partnership

(noun)

An agreement between individuals to collaborate towards mutually determined objectives.

Related Terms

  • A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately-owned corporations, cooperatives, partnerships, or sole proprietorships.
  • stipulate
  • Partnership Agreement
  • Expulsion
  • loss
  • Sole Proprietorship
  • liabilities
  • limited liability

(noun)

A partnership is a form of business in which two or more people operate for the common goal of making profit. Each partner has total and unlimited personal liability of the debts incurred by the partnership.

Related Terms

  • A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately-owned corporations, cooperatives, partnerships, or sole proprietorships.
  • stipulate
  • Partnership Agreement
  • Expulsion
  • loss
  • Sole Proprietorship
  • liabilities
  • limited liability

Examples of partnership in the following topics:

  • Partnerships

    • There are two types of partnerships: a relational and strategic partnership.
    • A relational partnership is a partnership that develops on the premise of a close, personal relationship built on trust (Mohr, 1994).
    • A relational partnership is more similar to a friendship than to a market exchange.
    • If this ideal is applied, a strong foundation can be formed through relational partnerships.
    • An example of a strategic partnership was evident in 2007 when Time Warner's AOL strengthened their strategic partnership with Google.
  • Advantages and Disadvantages of Partnerships

    • Partnerships have certain default characteristics relating to both the relationship between the individual partners and the relationship between the partnership and the outside world.
    • Each general partner is deemed the agent of the partnership.
    • However, in a partnership of any size, the partnership agreement will provide for certain electees to manage the partnership along the lines of a company board.
    • Partnerships are relatively easy to establish; however time should be invested in developing the partnership agreement
    • As in sole proprietorships, partnerships have unlimited liability.
  • Types of Partnerships

    • For the purpose of this discussion, the most important types of partnerships to consider are general partnerships, limited partnerships, joint liability partnerships, several liability partnerships, and limited liability partnerships.
    • This represents a default version of a partnership, which governs the relationships between the individual partners as well as between the partnership and the outside world.
    • Finally, there are limited liability partnerships (LLPs).
    • When considering the appropriate type of partnership, liability is the key word.
    • Differentiate between partnership types, and recognize the key role liabilities play in these partnerships
  • Partnerships and Taxes

    • Various partnerships need to file different tax forms; it is important to understand the IRS codes before embarking on a partnership.
    • Different types of partnerships have different tax requirements, and partners will need to fill out different forms depending on the type.
    • It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
    • Formation is more complex and formal than that of a general partnership.
  • Partnership Agreements

    • Partnership agreements govern the relationship between the various individuals who are collaborating on a given venture.
    • Similar to a sole proprietor, a partnership shoulders the majority of the risk when opening a new venture (unlike limited liability models).
    • For example, let's assume that a startup company decides to formulate their business as a partnership between four people.
    • Here are a few common components of partnership agreements:
    • Recall the more common components of partnership agreements, and recognize why these agreements are valuable
  • Phases of relationship development

    • Strategic partnerships experience four major developmental phases and Exhibit 36 represents the life cycle of such a relationship.
    • Partnerships can have various types of relationships; some areas may only need to be functional, whereas others may seek to be strategic.
    • During this phase, parties engage in exchanges to explore potential partnership costs and benefits.
    • After both parties prove that they are capable of performing as needed, the partnership will move to the expansion phase.
    • The dissolution phase is the decision to end the partnership.
  • Marketing exchanges and partnerships

    • In 2005, Barton A Weitz, Stephen B Castleberry, and John F Tanner published their book "Selling: Building Relationships" in which they discuss many of the aspects of modern business relationships, including market exchanges and partnerships.
    • A partnership, conversely, is based on creating a mutually beneficial affiliation for both of the organizations.
    • Market exchanges and partnerships both generate commercially oriented connections, which classifies the two relationships as external (Weitz, Castleberry, and Tanner, 2005).
  • Foundations of successful relationships

    • Trust, however, is only one building block of several involved in the creation of strategic partnerships.
    • In order for a partnership to be successful, trust must be mutual.
    • Proposed partnerships perceived as contrary to the existing structure or cultures are candidates for enhanced scrutiny.
    • Once a partnership is entered into it is necessary to develop programs such as training and rewards to establish the desired partnership behaviors.
    • Thus, it is important to evaluate the level of intrinsic gain that has been established through the partnership.
  • Types of Ownership

    • Larger businesses or those with wider ownership or more formal structures, will usually tend to be organized as partnerships or (more commonly) corporations.
    • Partnerships cannot be taken public.
    • Small businesses are normally privately-owned corporations, cooperatives, partnerships, or sole proprietorships.
    • A partnership is a form of business in which two or more people operate for the common goal of making profit.
    • Each partner has total and unlimited personal liability of the debts incurred by the partnership.
  • Choosing the right relationship

    • The idea is that as partnerships are successful, the companies will make more money, i.e.
    • Strategic partnerships may be established in order to gain access into a specific niche or market.
    • Other partnerships may be formed in an effort to improve a company's image.
    • A partnership may be developed in order to gain access to technological innovation.
    • The key to every successful partnership is communication and, as a result, technology should be used as a means of increasing communication lines.
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