Forms of enterprise connections

Consortium

Consortia are enterprise connections on contractual basis to the completion exactly defined tasks. After fulfilment of these tasks they separate. As company form the form of the society of civil right (GbR) is normally selected. Most frequently to find are bank consortia, which are formed for the purpose of the emission by securities or shares and/or to the assignment of larger credits. In the industry consortia are mainly formed, in order to be able to accomplish large-scale projects. As every other co-operation also the consortium can fall under the trust prohibition, as far as it is connected with restraints of trade.

Trust

Trusts are co-operation between enterprises on the basis of contracts between enterprises, behaviors or resolutions of enterprise combinations, co-ordinated one on the other, which are entered regularly with the goal of limiting the competition in the relationship between the partners taken part in it or in relation to third. The legal and organizational remains outward. If co-operation is connected with restraints of trade, then it is subject - Germans or European - to the trust right, in particular the trust prohibition.

Syndicate

The syndicate is the tautest form of a trust. Economic and legal independence is partly given up by the enterprises involved. Kernel functions like the paragraph or the procurement are transferred to an independent commercial company. Syndicates are forbidden in Germany in principle.

Joint venture

Joint venture (joint undertaking, German divided adventure) are from two or several enterprises together carried things, which are connected in any form with the guidance of the master enterprise. With this form of the enterprise connection individual enterprise activities are not only organizational linked, but also necessary resources are brought into the together created society. Joint venture often based over in new to seize v.a. foreign markets foot or establish around manufacturing plants there. Frequently a society is created similarly the German GmbH as well as a domestic enterprise. Into the new society the participation can to be e.g. flowed in the form of immaterial fortune articles, as Lizensen, rights, customer master etc. or in the form of real estates, production plants or moneys. Often the portions of the two (or more) partners are in equal numbers, i.e. in equal parts.

Strategic alliance

A strategic alliance is a partnership, with which the freedom of action of the enterprises involved is considerably reduced in the ranges concerned by co-operation. Such a connection is entered by the enterprises involved if its long-term existence and its long-term success depend on a co-operation. With it the following central issues are to be answered:

• Choice of attractive markets,
• Defense and development of competition positions as well as
• Preservation and stabilization of core authority.

Briefly said it concerns to attain competition advantages in relation to the competition.

Substantial reasons for intensified entering of strategic alliances lie among other things:

• in the pronounced globalization tendencies of the paragraph and procurement markets,
• the shortened product life cycles and the risen costs of research and development of new products,
• the chances by the exchange of technical know-how,
• the reaching of scale effects, since the fixed costs resulting in the enterprises can be distributed on larger output quantities,
• the avoidance of anti-trust-actions, evasion of national trade restrictions and the faster penetration of technical standards.

Company

After "§ 18 a dominant and or several dependent enterprises a company imagine law on limited companies (AktG). The individual enterprises are considered then as company enterprises. The legal of the dependent enterprises remains existing thereby further, however they lose their economic independence. In Germany approximately 90% of the corporations and approximately 50% of the unincorporated firms in companies and/or company-similar structures are organized.

At the company two Grundtypen are differentiated. The coordinating company is present during equalization of the enterprises without over or subordination relationship. One speaks then of sister companies. At the subordination company one speaks against it of a parent company and a subsidiary.

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Advantages, kinds and execution of an alliance

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