Nature of the businessFabulous Fabrics Partnership is a business venture formed to supply the latest and the most fashionable fashion wear for all seasons. The venture will store ladies wear and menswear including suits, dresses, skirts, dresses tops and other garments. In consideration of a niche market that loves uniqueness and originality, the venture will have a department with competent designers that will design clothes according to the client’s tastes and preferences. In this section the store will stock high quality fabrics that cut across the continents fabrics. This will include Asian and African fabrics.
The store will also store shoes and accessories like jewellery handbags and rings. The jewellery section will also include the Asian and African preferences so as to satisfy the niche market whose tastes and preferences are inclined towards this. The business venture will also have a section that deals with designer colognes and perfumes to complete the client’s day wear. The business venture is set after considering the niche market that includes a diverse range of clients. The first clientele group is the people with an average income or the middle class society.
The business venture will stock most of the merchandise based on this class based on the fact that they are the largest composition at the location of the venture. The high income earners are also a target group especially in the accessories department as the venture will stock high quality products. The business venture stocks this wide variety of products so as to ensure that it’s a one stop shopping mall for clothes and accessories. This is a strategy to increase sales as the speculation is that clients will always buy accessories to match their wear. Legislation affecting the businessThe Partnership Act of 1890 and the amendments thereof determine the existence of a partnership company.
The Fabulous Fabrics partnership must fit into the description that is given in chapter 89 sections 1 of the act. This implies the partners must have a motive of making profit as stated. Section 42 subsection 1 spells out the action that should be taken in case of the death of a partner. The section states that such a member should be entitled to a share in the settlement of the final accounts.
The same section also gives similar conditions in case of a member ceasing to be part of the partnership. The legislation requires that the partners should fill an individual Self assessment tax return the partners the supplementary pages of SA104. The partners should nominate a partner who should file a Partnership Return –SA800 that shows each partner’s share of profits or losses. The legislation also states that any act or instrument relating to the business that is done in the firm name or done with an intention to bind the firm done by an authorized person is binding on the firm and on the partners.
The legislation states that every partner is jointly liable e with the other partners for all the debts and obligations incurred by the firm while he is a partner. When a partner commits an act of omission that is wrongful in the course of the firms business that causes loss or injury to a person who is not a partner in the firm the firm is liable in the same extent as the partner omitting the act.