Question

In: Accounting

The task: You are working in a partnership position in a company and An existing Provider...

The task:

You are working in a partnership position in a company and An existing Provider is looking for 10X growth with your company in 2020. you have scheduled a call with the provider's manager. Your CEO is also invited to this call.

1- Please write down a structure for the call and draft 3-5 potential solutions that you supposed to discuss with the partner.

2- prefer/prioritize these solutions in a way you expect to achieve the best result from the call. Justify your choices and your strategy.  

Solutions

Expert Solution

The structure of the call:

Greet the provider’s manager and ask for his well being

Start with the introduction of the company

Give a brief outlook and objective of the company

Discuss about the partnership prospective

The companies can enter into a limited partnership: One company can act as a general partner and the other can be a limited partner. The limited partner will just have to invest in the partnership and will not be required to manage the same. The general partner will be required to manage the overall operations of business. The provider can act as a limited partner and can provide the investment. The subject’s company will use this investment as a capital to invest and multiply in future years.

The companies can come together and form a general partnership: Both companies will be equally liable for the partnership. The investment will be equal of both partners and they will manage the business equally. The business decisions must be taken in consensus.

The companies can enter into a limited liability partnership: More companies can be allowed to invest in the partnership. The liability in the partnership will be limited. The subject’s company will act as general partner and will manage the investments.

The pros and cons of each solution must be discussed upon

The best solution for both the companies must be discussed upon

· The CEO can provide time to the provider’s manager to discuss the prospective with their management and then take the call about the partnership accordingly

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