An Agreement To Cooperate In The Management And Control Of A Firm (Without Ownership) Is Known As

Who would have thought so? Two ex-hippies very interested in social activism would eventually create one of the most well-known ice cream companies in the country – Ben & Jerry`s. That may be the case. Ben Cohen (ben from Ben & Jerry`s) has always had a fascination with ice cream. As a child, he made his own mixes by pounding his favorite cookies and sweets in his ice cream. A major problem for partnerships, as for sole proprietorships, is unlimited liability: in this case, each partner is personally liable not only for its own actions, but also for the actions of all partners. If your partner makes a mistake in an architectural office that collapses a structure, the loss suffered by your business affects you as much as he or she does. And here`s the very bad news: if the company doesn`t have the money or other assets to cover the losses, you can be sued personally for the amount due. In other words, the party that suffered a loss because of the error can sue you for your personal property. It is understandable that many people are reluctant to enter into partnerships because they are indefinitely responsible. Some forms of business allow owners to limit their liability. These include limited partnerships and limited edanito companies. What if a company wants to do business in a foreign country but doesn`t have the expertise or resources? Or what if the government of the destination country does not allow foreign companies to operate within their borders, unless it has a local partner? In these cases, a company can establish a strategic alliance with a local company, or even with the government itself.

A strategic alliance is an agreement between two companies (or a company and a nation) to pool resources to achieve business goals that benefit both partners. For example, Viacom (a leading global media company) has a strategic alliance with Beijing Television to produce Chinese-language music and entertainment programs. [5] A partnership (or complementary trading company) is an enterprise jointly owned by two or more persons. About 10% of U.S. companies are partnerships[2] and, while the vast majority of them are small, some are quite large. For example, deloitte`s four major audit firms, PwC, Ernst & Young and KPMG are partnerships….