ACCT 618 Unit 2 Discussion Board

This discussion focuses on the tax implications of partnerships, characteristics of a
partnership that I think is beneficial and detrimental, the reason I believe most partnerships fail,
and whether or not I would like to be in a partnership.
One tax implication of a partnership is that the partners must file individual tax returns
from the profits they make from the venture. This means that the partnership itself does not pay
taxes, but the partners have individual tax obligations they’re supposed to fulfill.
One of the advantages of being in a partnership is the ability to combine resources, skills,
knowledge, and ideas. The advantage is that the partners can pool their strengths and work
together towards achieving the purpose for which they formed the partnership. For example, one
partner may have intricate knowledge in the business area of operations, while the other could be
a talented and skilled marketer for the partnership’s products, while the third partner can raise the
capital required to commence operations and be a good bookkeeper. By combining such
resources, the partners can leverage each other’s strengths and skills and create a thriving
environment for the partnership.
One detrimental aspect of partnerships is the competing interests of the partners. Partners
form partnerships because they agree to work together. However, it is not uncommon for
partners to develop competing interests, especially when the business grows exponentially. This
can happen when the partners, mentality, goals, and priorities change midway. Partners may
sometimes be unable to overcome personality differences to collaborate (Ward, 2022). Common
disagreements could be about tactics, while another partner focuses on long-term strategy. Both
benefit the company but may be a source of dispute and conflict. When partners can’t find

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common ground, they may be unable to make the best decisions for the partnership’s survival
(Chen et al., 2013). This can lead to the failure of the partnership.
I would not like to be in a partnership. This is because I, by nature, am a competitive
person. I always like to have my own way of doing things, and I like to control processes and
outcomes, and this may not be completely possible in a partnership. As such, other partners may
find it difficult to work with me, or I may find it difficult to work with them. I believe this can be
a recipe for conflicts that may be detrimental to the partnership. Because I like things done my
own way, I may sometimes infringe on the roles that other partners are supposed to perform.
Meaning that I may sometimes take up work that does not belong to me. The roles I am supposed
to attend to may therefore be at risk of not being completed.

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References
Chen, C., Hubbard, M., & Liao, C. S. (2013). When public–private partnerships fail: Analysing
citizen engagement in public–private partnerships–cases from Taiwan and China. Public
Management Review, 15(6), 839-857.
Ward, S. (2022, September 15). Why business partnerships fail. The Balance Small
Business. https://www.thebalancesmb.com/why-business-partnerships-fail-4107045