Difference Between Adversarial and Partnership Relationship in Business

Business is defined as an entity i.e., basically, an organization or enterprise entity that is involved in professional, industrial and commercial activities. Every entity or a company has to maintain a relationship based on work. The relationship can be of two types: Adversarial relationship and Partnership relationship.

Adversarial Relationship vs Partnership Relationship

The main difference between the Adversarial relationship and Partnership relationship in business is that in Adversarial relationship entities or companies treat each other as an opponent and has competition in between, whereas in Partnership relationship entities or companies work together and make sure in profiting each other.

Adversarial vs Partnership Relationship

An adversarial relationship is based on competition with the opponent entity or company. In an Adversarial relationship, there is a loss of trust or completely no trust found between the two entities. In an Adversarial relationship, there is only one-sided profit or loss. It does not benefit both entities together. Adversarial relationship generally has no motive in helping the opponent entity in case of any loss it faces.

On the other hand, a partnership relationship is based on collaboration or association between two entities or companies. In a Partnership relationship, there is complete trust or full of trust and faith between the two entities. In a partnership relationship if there is profit then it benefits both the entities collaborating. The same goes in the case of facing a loss. Partnership relationship focuses on benefitting each other commercially, industrially or professionally.

Comparison Table Between Adversarial Relationship and Partnership Relationship

Parameters of ComparisonAdversarial RelationshipPartnership Relationship
InvolvementThere is no involvement in each other’s company and does not necessarily share the same goal.There is a common goal between the two entities and therefore there is complete involvement between the two.
TrustThere is no trust or very less trust between the two entities. There is trust and faith between the two companies.
BenefitsIt focuses on benefitting its own company.It focuses on equal benefit of the companies or entities.
Time PeriodIt is based on short-term contact. It is based on long-term contract.
CompetitionThere is a lot of competition. There is no such competition involves, rather this is an association of two entities.

What is Adversarial Relationship in Business?

An adversarial relationship is a kind of association faced in business. An adversarial relationship is based on competition with the opponent entity or company. In an Adversarial relationship, there is a loss of trust or completely no trust found between the two entities. In an Adversarial relationship, there is only one-sided profit or loss. It does not benefit both entities together. Adversarial relationship generally has no motive in helping the opponent entity in case of any loss it faces.

Adversarial relationship situations should be managed very wisely. Seven points must be kept in the mind during an Adversarial relationship. Those are: to have a sincere conversation with the opponent entity, to have control in anger, must have patience, must have the audacity to take risks with the coworkers, must have a healthy attitude towards the work and every one, must have a corporate lawyer for the company, must take care of secret adversarial conditions. The most important thing to keep in mind is to have a strong batch of a corporate lawyers.

An adversarial relationship between two companies has a lot of competition and there might occur a lot of conflict between the entities or companies. Conflicts can take a bad turn and might even push the company or entity into a great loss, in that case, a company needs a corporate lawyer. A corporate makes the commercial transactions and legal rules certain.

A corporate lawyer will research and make sure of any bankruptcy, illegal transactions, intellectual property harm, accountancy, etc. If any such activities are observed the lawyer can defend the company the entity or the company and sue the opponent for such an act.

What is Partnership Relationship in Business?

The Partnership relationship in business is a legal relationship that involves two entities or companies. A partnership relationship is based on collaboration or association between two entities or companies. In a Partnership relationship, there is complete trust or full of trust and faith between the two entities. In a Partnership relationship if there is profit then it benefits both the entities collaborating.

The same goes in the case of facing a loss. Partnership relationship focuses on benefitting each other commercially, industrially or professionally. Partnership relationship is categorized into three types: General partnership, limited partnership and limited liability partnership.

To form a partnership, both the entities must sign an agreement based on the terms the partnership will continue. The agreement includes the contributions both the companies will make in the partnership, the amount of investment they will make, the distributive share between the entities in the partnership, the division of responsibilities between the entities. The agreement must be signed by the state or states authority, as every state has different rules and regulations.

A successful partnership is generally created. It must be created with the help of an attorney. The attorney gives the idea of how to solve disputes and have a powerful agreement between the entities or companies. In case of the ongoing partnership an entity wants to separate then it must be discussed with the attorney. The attorney will sign legal papers in case of such separation.

Main Differences Between Adversarial and Partnership Relationship in Business

  1. An Adversarial relationship has no trust in between, whereas a Partnership relationship has trust.
  2. An Adversarial relationship involves a lot of competition, whereas a Partnership relationship has no such controversy or competition.
  3. An Adversarial relationship does not have any both sides profit, whereas a Partnership relationship focuses on benefitting each other (professionally, commercially or industrially).
  4. An Adversarial relationship is based on a short-term contract, whereas a Partnership relationship is based on a long-term contract.
  5. No internal information is shared in an Adversarial relationship, whereas maximum information is shared during a Partnership relationship.

Conclusion

Adversarial relationships and Partnership relationships both are business-related relationships that must have legal witnesses and lawyers. Entities or companies generally prefer a Partnership relationship in case of long-term contracts and has a friendly environment that benefits the companies and their coworkers equally.

In the case of short-term contracts, an Adversarial relationship is the only option left. An adversarial relationship is not a friendly relationship between two entities. But it is more preferred for competition between two entities or companies. Both the relationships are common in Business.

References

  1. https://www.emerald.com/insight/content/doi/10.1108/13598540310468760/full/html
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