Essay: What is a Partnership

Sample Essay

A partnership is a formal arrangement between one or more individuals or business entities agreeing to cooperate in order to advance their own interests. The partners involved share the losses or profits realized. Strategic alliance on the other hand is a non-formal contractual alliance involving two commercial ventures with the main intention of commercial purposes.

Partnership involves joining together of businesses, which are not necessarily direct competitors but only with similar products and thus the same target market. In this alliance of a partnership, the two business ventures involved need to benefit from each other. The resources provided by strategic alliance partners include distribution channels, products, manufacturing capability, capital equipment, project funding, intellectual property or expertise and knowledge.

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