Jane and Jarrod Have Been Employed by Two Different Firms

question 42

Essay

Jane and Jarrod have been employed by two different firms of photographers. They decide they should get together and establish their own business, called JJ Photographers. Each has decided to contribute $20,000 in cash to buy equipment, and they will rent premises in the local shopping centre. Both will work full time in the business and share profits and losses equally. They are not sure whether they should set up as a partnership or as a private company and have come to you for advice.
REQUIRED:
Explain to Jane and Jarrod the advantages and disadvantages of a partnership versus a private company structure for their new venture.

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Definitions:

Zoroastrian

A follower of Zoroastrianism, one of the world's oldest monotheistic religions, founded by the prophet Zoroaster in ancient Iran.

Group Membership

The affiliation or inclusion of individuals within a group, which affects their identity and social interactions.

Social

Pertains to activities, behaviors, or phenomena related to the interactions and relationships among individuals within a society.

William James

An American philosopher and psychologist, often referred to as the "Father of American psychology."