IGCSE Enterprise: Specimen Questions with Answers 17 - 18 of 49

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Case Study: 4

Jones and Little (2000) present a critical analysis of the role of partnership in new public management in the UK, in a paper called Rural challenges: partnership and new rural governance. The authors note that: “whatever definition is favored, partnerships or networks between the public, private and voluntary sectors are an important part of what constitutes novel forms of governance” in the UK. The authors question the uncritical promotion of this form of governance, which emerged from the “traumatic neo-liberal restructuring of urban politics in the 1980s” and its transfer to rural areas, where it brings the requirement for rural organizations and In the field of public policy, partnership is often viewed as the second generation of efforts to bring competitive market discipline to bear on government operations (after the first generation efforts of privatization) . The authors argue that contemporary discussions of partnership approaches lead to submergence of key issues about power relations, accountability, public spending levels, and equitable resource allocation in the systematic addressing of the needs of rural communities. They question the culture of partnership and its suitability as a means of securing effective rural regeneration, arguing for greater scrutiny to be paid to its increased political currency and practical applications.

In Government – non-profit partnership: A defining framework, Brinkerhoff (2002a) notes that partnership has emerged as an increasingly popular approach to privatization and government – non-profit relations. However, there is no consensus on what partnership means, and its practice varies. The author provides a useful review of partnership literatures and refines the definition of partnership using the concepts of ‘mutuality’ and ‘organizational identity.’ These concepts are used as the two axes of an inter-organizational relationship matrix, in which partnership is distinguished from three other basic relationship types: contracting, extension, and co-option or gradual absorption.

Question 17 (4 of 12 Based on Passage)

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How are business decisions made in partnerships?

Explanation

Small businesses are often created with the partnership because they pool their resources, capital, and divide shares into all the partners. When a decision must be taken, all partners sit along and based on the business is structured, it influences the decision made in partnership.

Based on the contract or specified factors of the business, partners share losses and gains or income. Most partnerships go through a contractual agreement or Articles of Partnership, that includes the business details, dissociations, responsibilities, profit/loss distribution, and more.

Question 18 (5 of 12 Based on Passage)

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Partnership is distinguished from three other basic relationship types: contracting, extension, and co-option or gradual absorption. Answer the following questions-

What are the essential features of partnership?

Explanation

The Essential Features of Partnership Therefore Are

  • It is an association of two or more persons.
  • An agreement entered by all persons concerned.
  • Existence of a business.
  • The carrying on of business by all or any them acting for all.
  • Sharing of profits of the business (including losses)

Partnership is the relation among partners which will be governed by natural agreement. The agreement is known as partnership deed.