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Tuesday, June 3, 2014

A Look At The Kingdom First Business Associates

By Marci Glover


Businesses are formed for a number of reasons. In most cases, ventures are formed with an aim of filling in a gap that exists in any markets. Market niches are as a result of some of customers needs being unsatisfied. This means that those who can take care of these needs special to the customers. A commercial venture may be established by one or more partners. Existence of partnership means that the costs and risks are shared proportionately.

corporate agreements are negotiated by a group of lawyers representing the various investors forming the partnerships. The Kingdom first business associates are one of these agreements. The partnerships are formed as result of specialization and pooling of various resources. Partnerships draw different kinds of partners. Some have specialized in the technical aspects while others have a specialty in the administrative matters. In the process of separate specialization, costs are reduced and businesses are run very well.

Partnerships are formed for a number of reasons. Some of the partners could be seeking methods of specialization. Others could be seeking methods of costs reduction. In the process, they court other experts with certain type of expertise. This is then followed by a delegation of duties between the various partners. The directors could take up role of finance and accounting directors in pursuit of cost reduction. Some joint ventures may be established in the process. Separate operations can be run concurrently by a joint venture or a strategic alliance.

Financing of most operations may be problematic. This is mainly because the partnerships may have a small finance base. The small capital base coupled with lack of some resources makes it hard for expansion operations. Pooling of resources is done by contributing. Each of the partners within the venture contributes a specific amount that goes into the operations. The returns from the operations are also shared according to the specified ratio.

Partnerships venture in different types of businesses. Some ought to set up businesses in manufacturing and production industry. This happens especially if partners have lot specialties in engineering or plant set up. Other partners especially those with specialty in finance and accounting venture into banking or accounting business. This may be faced with a lot of competition from the already established local firms in banking.

Partnership regulations differ from one country to another. There are international regulations that guide the cross border partnerships and especially those on a multilateral level. These regulations are then implemented under different local conditions to suit the local business conditions.

The government may give the local partnerships some incentives to ensure that more businesses are set up. This is mainly in form of tax reduction. In some cases, some business operations are completely exempt from taxation for some years. The exemption ensures that firms get enough time to adapt to local conditions.

Government- private partnerships are very common especially in mature and stable economies. The government offers some private developers an opportunity to develop a project. The private investors are allowed to run these projects for some time till they recover the expenses. After all the expenses have been recovered, the projects can be handled over to the government.




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