The need for outsourcing can be understood by the following points

o Focus on core activities – Outsourcing allows companies to focus on core activities that are core to the companies and important for the company, rest all the activities can be outsourced to other third-party service providers

o Cost reduction - To remain competitive, cost-cutting is important, many companies outsource their manufacturing to the developing and underdeveloped where labour is available cheap to cut down the production cost.

o Growth through alliances- Companies outsource some of the activities of other organisations and use there expertise and alliance, by this company also don’t need to make any investment and get access to their knowledge and skills.

o Stimulate economic development – Outsourcing provides an opportunity for entrepreneurs to start a new business which boosts the economy and provide employment to other people.

• Limitations of the outsourcing are mentioned below

o Confidentiality – You need to share a lot of vital and important information to the service providers and they have information about your business process. If the outsourcing partner does not preserve the information properly, it can be outsourced to the other business partner and can harm business.

o Ethical concern – for cost-cutting companies outsource the production and manufacturing to developing or underdeveloped countries, where child labour are used, work condition ate good and gender-based wages discrimination, which is not ethical as indirectly companies are using child labour for cost-cutting.

o Resentment in the country – when one company outsource its activity of another country from where they can get these services cheaper, it causes resentment in the home country as the job of home country people are outsourced to the other country.

Advantages

1. There are no problems related to tariffs and exchange rates.

2. Shipping costs may not be there at all, or may be very low.

3. It helps to create more jobs within the country.

4. It facilitates the exchange of goods within the country.

5. It helps in the growth of the economy.

6. It helps to improve the standard of living of the people.

7. It ensures the availability of raw materials and helps in the growth of an industry.

8. It also helps in foreign trade because the traders from other countries contact the internal traders to get the products.

Disadvantages

1. A large amount of capital is required to start and run the trade.

2. It may not be possible to obtain professional management due to lack of funds.

3. Lack of resources or funds can restrict the growth of business.

There is a difference between retail shops and online shopping because of the perks the latter offers.

You get things at your home with a lesser price most of the times is better than going to the shop and trying to bargain with a rock.

But at the same time, you don’t get the personal connection of having a laugh and complaining and feeling like talking to a live human.

That is unmatched.

Answer:-

The Indian Partnership Act, 1932 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or anyone of them acting for all.” Some people consider partnership to be relatively unpopular because the inherent features of partnership such as joint risk bearing and profit sharing, collective decision making, unlimited liability of partners, etc. Sometimes lead to conflicts among partners and undue burden on some of the partners. Besides, public confidence in partnership firm is low. But partnership as a form of business organization actually has both merits and limitations as discussed below

Merits of Partnership

(i) Ease of Formation and Closure A partnership firm can be formed with minima] legal formalities by an agreement between the prospective partners whereby they agree to carry out the business of the firm and share risks. Registration of the firm is also not compulsory. Closure of the firm can be done easily too.
(ii) Varied Expertise and Effective Decisions The partners can look after different functions according to their areas of expertise. This reduces the burden of work on individual partners and leads to more effective decisions.
(iii) More Capital In partnership, the capital is contributed by many partners. Thus, larger amount of funds are available as compared to a sole proprietor to undertake additional operations when needed.
(iv) Risk Sharing All the partners share the risks involved in running a partnership firm. This reduces the anxiety, burden and stress on individual partners. (v) Secrecy A partnership firm is not legally required to publish its accounts and submit reports. Hence, it can maintain confidentiality of information relating to its operations.

Limitations of Partnership

(i) Unlimited Liability The partners of a firm have unlimited liability. Personal assets may be used for repaying debts if the business assets are insufficient. Further, the partners are jointly and individually liable for payment of debts. Hence, if some partners are unable to pay the debt proportionate to their share, the others will have to repay the entire debt causing excessive burden on them.
(ii) Limited Resources Partnership firms usually do not operate on a large scale as there is a restriction on the number of partners and hence, contribution in terms of capital investment remains insufficient for business expansion beyond a point.
(iii) Conflicts Decision making authority in a partnership is shared by all the partners. Difference in opinion may thus lead to conflicts between partners. Decisions of one partner are binding on other partners and a wrong decision by one may result in financial problem for all others. If a partner decides to leave the firm due to conflicts, this can result in termination of partnership as there is a restriction on transfer of ownership.
(iv) Lack of Continuity Partnership comes to an end with the death, retirement, insolvency or lunacy of any partner. It may result in lack of continuity if the remaining partners do no enter into a fresh agreement to continue the business.
(v) Low Public Confidence Due to lack of transparency in the business of a partnership firm, the confidence of the public in partnership firms is generally low. It is difficult for the public to ascertain the true financial status of a partnership firm as it is not legally required to publish its financial reports or make other related information public.

1. Less secrecy : When an organisation outsources human resources, payout and recruitment services, it involves a risk of exposing confidential company information to a third party.
2. Quality service : Unless a contract specifically identifies the measurable process of quality service reporting, there could be a poor service quality experience. Some contracts are written intentionally to leave service levels out to save on costs.
3. Lack of customer focus : An outsourced vendor may be catering to the expertise needs of multiple organisations at a time. In such situations, vendors may lack complete focus on your organisation’s tasks.
4. Hidden cost : Although outsourcing most of the times is economical in nature, at times hidden costs are involved in signing a contract. Signing a contract across international boundaries may pose a serious threat.
5. Public opinion: There can be negative perceptions regarding outsourcing and sympathy for lost jobs. This needs to be managed with sensitivity and grace.

Joint Hindu Family Business is a different type of organization, which is found only in India. As the name suggests, it is type of organization in which all the members of Hindu Undivided Family manage and control the business with the direction of head of the family. It is not a Partnership.

A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers. Virtually everyone living in a developed economy has an ongoing or at least periodic need for the services of financial institutions.

An entrepreneur is a person who undertakes a venture with some profit potential and involving a considerable amount of risk and therefore, entrepreneurship is the venture undertaken by the entrepreneur. The most obvious example of entrepreneurship is the starting of a new business.

Characteristics of Entrepreneurship

While there can be as many characteristics of entrepreneurship as there are people in this world with opinions, there are some characteristics that are considered indispensable or necessary in an entrepreneur. These are listed here as follows.

Ability to take Risks

This is the first and foremost trait of entrepreneurship. Starting any business involves a considerable amount of risk of failure. Therefore, the courage and capacity to take the said risk are essential for an entrepreneur.

Innovation

In a world, where almost everything has been done, innovation is a priceless gift to have. Innovation basically means generating a new idea with which you can start a business and achieve a substantial amount of profits. Innovation can be in the form of a product, i.e., launching a product that no one is selling in the market. It can also be in the form of process, i.e., doing the same work in a more efficient and economical way.