3.1 Problems in Entrepreneurial Teams

Question 1

What is the difference between partnership and quasi-firms?

Answer 1

Quasi-firm: people engaging in a business relationship without forming a firm or an integrated venture
Partnership firms: cooperations with a long-term focus, people are on the same level in hirarchy (eg. OHG), formal contract

Question 2

Descibe the case of Business Consultancy as an example for the partnership- and quasi-firm question

Answer 2

Important factors: know-how, know-who and beeing known of.

• consultant has two important tasks: network and solve projects
• solve this problem as a quasi-firm: specialised consultants cooperate w/o contract: no legal fixation and allocation problems, low potential of dependencies
• as a partnership firm: same level consultants, contract indep. of projects, learning-effects from long-term coop: less flexible but allocations can be fixed ex-ante, less risk