Question

In: Finance

what are commonalities and differences in equity partnerships from various companies? ( technology, investment, cross-training)

what are commonalities and differences in equity partnerships from various companies? ( technology, investment, cross-training)

Solutions

Expert Solution

An equity partnership is defined as a joint venture where the founders come together to pool their capital and skills to start a firm or organization.

Equity partnerships can be structured in multiple ways depending on the terms and conditions required. It also differs from the product or service offering of the firm or organization.

Partnership agreements are generally of two types:

1. General partnership: The liability of the partners are for the entire firm and not limited to his contribution to the firm.
2 Limited Liability Partnership: The partner's liability is limited to the proportion of his contribution in the investment in the company. Thus he or she is not concerned if there is a requirement more than what he or she has already contributed.

Companies generally operate on general partnerships. Limited production companies like film production, real estate and form like law firms, accounting firms etc work kn limued partnerships.


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