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.

Partnerships are special corporate agreements between groups of investors. Kingdom first business associates are a classical example of partnership. The partners came together trying out their hands in different types of businesses. Through the special partnership, they are able to specialize. One could be an expert in finance and accounting matters while the other partner may have special skills in administration. Through the delegation and sharing of duties, costs are reduced. With specialty 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.

There are partnership regulations in different parts of the worlds. Most of local regulations are adopted from the cross border partnership frameworks. The process of local adaptation is done in such a way that the international standards are implemented into the local business conditions.

Local partners may receive some incentives from the government as a way of promoting businesses. Some may be exempt from taxation for the first few years of operations. This gives them time to adapt to local environment. Some of their business operations may also be completely exempt from taxation.

As a way of promoting the local business environment, the government may get into partnership with some of the businesses. For instance, in running of public affairs, the government may contract a private partnership in developing of a project. The private partner is allowed to recover all the expenses by taking up a part of returns from such projects or some time before handing over to the government.