Sole Proprietorship and Partnership

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CASE STUDY
Parker Oil Ltd. and Oil Exploration Ltd. agreed to explore the possibility of finding oil in a relatively open and accessible area near Parker Oil’s producing field. Parker Oil agreed to acquire an option to purchase the property and the underlying mineral and petroleum rights. Oil Exploration agreed to provide drilling equipment and surface crews to drill potential sites on the property. Parker Oil also agreed to pay for 30% of the costs of the drilling operations. The two companies agreed to share any profits on an equal basis. Oil Exploration Ltd. also provides drilling services on a straight contract basis to a number of other oil companies in the area.

What type of formal relationship should the two corporations establish for the project?
What issues should be addressed in the agreement.
What risks does the relationship raise?

 

Sample Solution

In the event that your business is in the product business and has an incredible thought, chances are another product organization may have prepared idea of it. if not, there might be no away to decide how shut another organization is to creating it. Time to advertise weights is an unpleasant reality in the product business. Rivalry can be nearby or universal and effect programming organizations as far as evaluating structures, client achieve, client maintenance, benefit level assertions and a large group of different components.

PM should work intimately with entrepreneurs, officials and different partners to flush out all factors that may affect the accomplishment of programming related ventures. There have been numerous product organizations that have created and actualized awesome programming just to discover the arrival on their venture was basically not there because of high challenge.

Legacy systems and infrastructure issues

Regularly organizations have contributed critical monetary and HR actualizing, upgra

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