What is a business partnership? Business partnership agreement: sample

The formation of such a form of business as partnership is due to an attempt to overcome the shortcomings of individual ownership. It is a contractual relationship established between several entrepreneurs with a view to joint ownership and management of the firm. This form of business organization allows each of them to obtain the desired profit through the exchange of performance results, expressed in tangible form. Partners unite their abilities in the management of affairs and the management of monetary resources. Thus, risks are distributed, as well as profit and possible losses.

Basic forms of partnership

As far as participating in the activities of the company, the business partnership can be different. Partners can play an active role in the management of the enterprise, or several participants can invest their material resources, but do not take part in the conduct of business. Cooperation in business can pursue different goals for each of its participants, while allocating the level of responsibility. From this follows the forms of partnership:

1. A commercial. An organization based on membership, the purpose of which is to make a profit.
2. Non-commercial. In this case, the goal of a non-profit organization is to help its members achieve individual goals (social, cultural, scientific, charitable, etc.).
3. Full partnership. The members are jointly and severally liable.
4. Limited partnership. Participants bear limited responsibility.
5. Strategic. At the same time, one of the partners is more economically significant, that is, more powerful in a financial sense, capable of providing another company with resources to achieve strategic goals.

Principles of partnership in business

The relations between people, companies and other participants of the financial market constantly increase the value created for interested parties. There are a number of principles on the basis of which a business partnership is being built:

1. Voluntariness.
2. A common goal and interest.
3. Interdependence arising from the distribution of risks, revenues, powers.
4. Emergence (the emergence of new properties as a result of combined efforts).
5. Obligations and agreement on the proportion of partners.
6. Collaboration.
7. Separation of resources and competencies.
8. Good communication.

The ethical aspect of the relationship is also very important for effective cooperation. It is mutual respect and trust of partners.

Advantages of business cooperation

Thanks to its undeniable advantages, business partnership is very much in demand as an economic mechanism. The offer of cooperation is perceived today as an effective way of multiplying its own profit. And the partnership is organized by signing a written agreement, without additional bureaucratic red tape.

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

1. The pooling of participants' resources gives new opportunities for business expansion. This not only improves the prospects for the development of the campaign, but also makes the organization less risky for bankers.
2. Business partnership provides motivation and interest in achieving high performance results.
3. The partner structure of the organization is more attractive for international investors.
4. High specialization in management.
5. Implementation of a communicative exchange.
6. Ensuring the competitive advantages of participants and achieving a balance of competitive forces.

Of course, cooperation pushes to create a unique business idea. Partnership, therefore, is a support for innovative sources. The internal potential of the organization is mobilized to fulfill its own economic goals.

Main disadvantages of the partnership

With all the positive opportunities, the business partnership has certain drawbacks. They are primarily related to the problem of the separation of power and the incompatibility of the views of the participants. The uncoordinated policy can turn into irreversible, negative results for both sides. Also, difficulties can arise in the formation of the structure of business management.

Another negative aspect is the unpredictability of the partnership. Factors such as the death of one of the participants, withdrawal from the partnership, can lead to the reorganization of the company or its complete disintegration.

The choice of a partner for further cooperation

The decision to attract a partner to carry out joint activities is taken for various reasons. In any case, it must ensure an effective business partnership.

The offer should be made only to market participants who are able to take responsibility and have a serious potential.

The partner should be fully involved in all business processes and take an active part in its development. Participants in the partnership should share the vision of the enterprise management strategy. Only in this way will it be possible to avoid disagreements and the threat of premature termination of cooperation. An obligatory condition is the documentary reinforcement of the partnership.

Rules of conducting joint business

Only choosing the right approach and meeting certain requirements guarantee successful business cooperation. The partnership will be an excellent tool and a way to increase revenue if the following are observed:

• The definition of a specific goal, objectives and desired results of cooperation;
• The initial distribution of powers, duties and revenues;
• Decision-making on the possibility of partner participation in another business;
• Monitoring of financial indicators in the process of cooperation, which is a test of performance.

All the terms of the partnership must be written in writing and legally confirmed.

Partnership in business of Russia

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

It is very important for economic prosperity of the state to develop business and partnership. Russia cooperates with many states, while increasing investment capital.

More characteristic for our country is the interaction of the state and the private sector for solving socially significant tasks. The so-called public-private partnership has a long history, including in Russia. However, the special popularity and demand has reached only in recent decades.

Partnership between the state and private business

Stimulating the emergence of relations between the state and business are several factors. First, the difficulties in social and economic life make it very difficult for the state to fulfill its important functions.

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

However, the partnership between the state and business, unlike privatization, preserves certain economic activities of the country. Most actively, such relationships are practiced in such industries:

• Housing and communal services;
• Transport, including urban;
• Education and health;
• Scientific sphere;
• Construction of public buildings;
• financial sector.

At the same time, the state actively participates in the production, administrative and financial activities of the enterprise, thus controlling the country's economic processes.

Sample of the partnership agreement

When the fact of cooperation between the parties comes into effect, a partnership agreement is made in business. Sample Such a document can be as follows.

Partnership Agreement

[Date]

Organization [Name of Organization], hereinafter referred to as Party 1, together with [Name of Organization], hereinafter referred to as Party 2, have concluded this agreement as follows:

1) Subject of the agreement.

2) Responsibility of the parties.

3) The order of calculations and financial reporting.

4) The procedure for resolving disputes and force majeure.

5) Term of the agreement.

6) Other conditions.

7) Requisites and signatures of the parties.

Depending on the specific situation, the most suitable form of the contract is chosen. They also use general provisions regulating activities and confirming coordinated cooperation in this area. In some cases, the procedure for changing and terminating the contract is disclosed . At the end of the document the requisites are indicated and the signatures of the parties are put.