Equity partnerships commonly are used in purchaser-supplier relationships, technology development, marketing alliances, and in situations in which a larger firm makes an investment in a smaller firm to ensure its continued financial viability. This is important because it ensures one partner has dominant control over the partnership.

Question

Quizplus · Accepted Answer

Equity partnerships do not necessarily ensure one partner has dominant control over the partnership. In fact, the terms of the partnership agreement can be negotiated to allocate control and decision-making power in a variety of ways.

Equity Partnerships Commonly Are Used in Purchaser-Supplier Relationships, Technology Development