What is a business partnership? The contract of partnership in business: sample

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2020-05-16 11:20:16

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Education is a form of business like partnership, due to the attempt to overcome the shortcomings of single ownership. It is a contractual relationship established between several entrepreneurs for joint ownership and management firm. This form of business organization allows each of them to obtain the desired profit at the expense of sharing results of operations expressed in material form. Partners combine their abilities in the conduct of business and the management of cash resources. Thus, risk distribution, and profit and potential losses.

business partnership

General partnerships

As participation in the activities of the firm business partnership may be different. Partners can play an active role in the management of the enterprise or several participants can invest their material resources, but participation in the conduct of Affairs to take. Cooperation in business may pursue different goals for each of its members, dispensing with the level of responsibility. This leads to forms of partnership:

  1. Commercial. The organization, based on membership, whose purpose - receiving profit.
  2. Non-profit. In this case, the non-profit purpose of the organization is to facilitate its members in achieving individual goals (social, cultural, scientific, charitable, etc.).
  3. Full partnership. Members bear a joint and shared responsibility.
  4. The Limited partnership. The participants have limited liability.
  5. Strategic. While one partner is more economically significant, that is more powerful financially able to provide other company resources to achieve strategic objectives.

The Principles of partnership in business

The Relationship between people, companies, and other financial market participants constantly increase the value created for stakeholders. There are a number of principles upon which to build a business partnership:

business partnership offer

  1. Voluntary.
  2. A common goal and interest.
  3. Interdependence arising from the allocation of risks, revenues, powers.
  4. Emergence (the emergence of new properties as a result of combining efforts).
  5. Commitments and an agreement to share partners.
  6. Collaborate.
  7. The Division of resources and competences.
  8. Good communication.

It is Also very important for effective cooperation is the ethical side of the relationship. It is a mutual respect and trust partners.

The advantages of business cooperation

Thanks to its undeniable advantages are very in demand as the economic mechanism business partnership. The offer to cooperate is seen today as an effective way of increasing their own profits. The partnership is organized through the signing of a written agreement, without additional bureaucratic red tape.

business collaboration partnership

It gives the opportunity to reallocate the various risks, and also has the following advantages:

  1. The integration of resources participants creates new opportunities for business expansion. This not only improves the prospects of the campaign, but also makes the organization less risky for bankers.
  2. Business partnership provides motivation and interest in achievement of high results.
  3. The Partnership structure of the organization more attractive to international investors.
  4. High specialization in management.
  5. The implementation of the communicative exchange.
  6. Provision of competitive advantages of participants and the balance of competitive forces.

Undoubtedly, the cooperation encourages the creation of unique business ideas. The partnership, therefore, is support for innovative sources. Mobilized internal capacity of the organization to implement its own economic purposes.

Main disadvantages of partnerships

With all the positive possibilities of a business partnership has certain disadvantages. They are primarily associated with the problem of the separation of powers and incompatibility of the views of the participants. An inconsistent policy may result in a fixed, negative results for both parties. Also difficulties may arise in formation of the structure of business management.

Another negative aspect is the unpredictability of the partnership. Factors such as the death of a member, the withdrawal from the partnership, can lead to the reorganization of the companyor its complete disintegration.

Selecting a partner for further cooperation

The Decision to hire a partner for the implementation of joint activities was adopted for various reasons. In any case it should ensure an effective business partnership.

business ideas partnershipOffer to do only market participants able to take responsibility and has serious potential.

A Partner should be fully involved in all processes of business and to take an active part in its development. The partnership must share the vision of the strategy of enterprise management. Only in this way will be able to avoid disagreements and threats of premature termination of the cooperation. A prerequisite is a documentary podkreplennost partnerships.

Rules of doing business

Only choose the right approach and compliance with certain requirements ensure successful business cooperation. The partnership will be a great tool and way to increase income if they met these moments

  • The definition of specific goals, objectives and desired rezultatov cooperation;
  • The initial allocation of powers, responsibilities, and revenues;
  • The decision on possibility of participation of a partner in another business;
  • Monitoring of financial indicators in the process of cooperation, which is the verification of the effectiveness.

All terms of partnership should be spelled out in writing and confirmed legally.

Partnership in Russian business

As such, the institution of partnership in Russia is quite young, although some companies use some elements in their activities. There are a number of domestic enterprises such plan, as well as organisations with participation of foreign partners.

business and Russia partnership

For the economic prosperity of the state is very important to develop business and partnership. Russia cooperates with many countries, with increasing investment capital.

More typical for our country is the interaction between the state and the private sector to address socially important tasks. The so-called public-private partnership has a long history, including in Russia. However, the popularity and demand reached only in the last decade.

A Partnership between the state and private business

Stimulates the emergence of relations between government and business to several factors. First, difficulties in socio-economic life considerably complicate the state's significant functions.partnership of government and business

Second, for business are always interesting new investment objects. Thus, PPP is an alternative to the privatization of socially important objects of state property.

However, the partnership of government and business, in contrast to privatization, retains a certain economic activity of the country. Most actively such relations are practised in such areas:

  • Housing;
  • Transport, including the city;
  • Education and health;
  • Scientific area
  • The construction of public buildings;
  • Financial sector.

The state is actively involved in the implementation of industrial, administrative and financial activities of enterprises, thus controlling the economic processes of the country.

Sample partnership agreement

Once the fact of cooperation between the parties to a contract for business partnership. A sample This document may be next.

partnership Agreement

[date]

Organization [organization Name], hereinafter referred to as Party 1, together with [organization Name], hereinafter referred to as Party 2, have concluded the present agreement as follows:

1) the subject of the agreement.

2) responsibilities of the parties.

3) billing and financial reporting.

4) dispute resolution and force majeure.

5) the Term of the agreement.

6) the other terms and conditions.

7) Details and signatures of the parties.

a contract of business partnership sample

Depending on the specific situation, choose the most suitable form of contract. Also use the General provisions for regulating and confirming the agreed cooperation in this area. In some cases, reveals the procedure for amendment and termination of the contract. At the end of the document it is specified details and signatures of the parties.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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