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Questions: 1.Compare and explain the main features, advantages and disadvantages, of the three types of legal relationship (Agency, Distributor, Joint Venture) your organisation could form with an enterprise in the TM of your choice. 2.Your MD has also told you that he has negotiated a Joint Venture Agreement with an enterprise, (XYZ Incorporated), which has been long established in your chosen Target Market Suggest the most important terms you think should be in this agreement to protect your organisations best interests in this particular arrangement and its entry strategy. Answers: Businesses not just vary in size and category of industry, but also in terms of their ownership. Some of them are owned by just a single individual or a small group of individuals, whereas others are owned by huge numbers of shareholders, or by some charitable trusts or foundations, and at times by even the state. Different legal forms get overlapped by different types of ownership structures that any business can take. The legal and ownership structures of any business is liable to be determining several of their legal responsibilities, which includes the paperwork that is needed to be completed by the owners for setting up their business, the different taxes that the business is required to be paying, the different ways in which the profits of the businesses gets distributed and the personal responsibilities of the owners if the owners make any kind of loss or goes bankrupt. At the broadest level, there is a possibility of distinguishing between organizations that are owned and run by private owners, those that are run by voluntary organizations and those that are owned and run by the state. The legal forms and ownership structures inside businesses vary from country to country. Choosing the right legal organizational structure for the business is a big decision that needs to be made by the organization. While it might not be having any influence on the everyday operations of any small business, it might and can have a huge influence at the time of taxing, or when there comes a need of borrowing money or attracting investors, or even in any unfortunate event that the organization has to face in court. There is the scope of changing the structure at a later date, but the procedure is hard and expensive. Thus, it is better that the right decision is taken in the first place (Bodie 2013; Hansmann 2013; Robb and Robinson 2014). Below is discussed three of the most basic forms of business ownership that TechnipFMC can consider as an entry strategy: Agency Agency relationships in organizations are its basic concept based on which other forms of business or other relationships get built like corporations, partnerships, trusts and similar ones. Agency relationships of organizations are the fiduciary relation that is a resultant of the manifestation of consent from one person to the other, which the other person would be acting in his or her behalf and is subjected to his or her control and consent by another for acting. In other words, one person, the agent agrees for doing something for another party, the principal, which is business to the mechanism of the party and the other party, the principal even approves to the agreement. It at the same time implies that the principal is normally bound to the actions of the agent, as the agent acts as if they were themselves the principal. This kind of relationships can both be personal or business. It even provides permission to the principal of the abilities of being in more than one place at a time, in turn expanding their possible business opportunities. In this scenario, the agent is no way completely accountable for the decisions that are made. As both the agent and the principal might be having different goals, the agency relationship might possibly create a conflict of interest. However, there also is involved a certain amount of confidence and trust. Two of the most common agency relationships found in businesses are: 1) employer/employee, and ii) the organization and their third party channels for the distribution of product. Inside an agency relationship, two contracts gets encompassed: contract between the organization and the agent, and contract made by the agent with the third party for and on the behalf of the organization (Block 2012; Desender et al. 2013). Agency relationships gets created legally in the following way: Appointment authorization: the general method of agency relationship creation is by means of express authorization - a person appointed for acting on behalf of another. There is no specific form of language required for the appointment of an agent (Montanaro 2012). Principals conduct authorization: Apparently an agent has authority at the time when the principal, by means of his words or behavior, reasonably directs a third party into believing that such an individual has the authority of binding the principal (Allen and Kraakman 2016). Commercial vs. government sectors: Generally, the law of agency is applicable similar to the government and the state purchasing agencies inside the private sector. The government contracting officers and state purchasing officers get their power from the statutes that created their organizations (Warner and Sullivan 2017). Distributor A distributor relationship involves foreign investment and a business and it might be subject to both the country distributor and the foreign supplier to some certain reporting requirements and disclosure under federal law. The term agent is mostly appropriate if used at the time when legal relationships that enter into with the help of parties is not of any agency but is of distributorship and franchise arrangements. It legal terms a difference exists in regards to the role of an agent, a distributor and a franchisee. Majorly distributor relationships are contractual, but a contract is not the sine qua non for the existence of any relationship. A distributorship agreement might by either expressing or implied. An express distributorship gets created by means of agreements between parties. An implied distributorship can get inferred from the behavior of the parties, or from any course of dealing amongst the parties. It is not rare for any distribution agreement to ask for the distrib utors to be using their best attempts for promoting the sale of the suppliers products (Hollensen 2015; Tseng 2014). Joint Venture Joint ventures are business enterprises that are under taken by two or more individuals or organizations for sharing the expense and the profit of any specific business project. Joint ventures are not necessarily business organizations in their sense of proprietorships, corporations or partnerships. They are in reality agreements among parties or businesses for any specific objective or venture. Their formation might be quite informal, while some arrangements might be extremely complex. In effect, a joint venture is a kind of partnerships that gets limited to any specific resolution. In recent years, joint ventures have increased in popularity, irrespective of the comparatively high failure rate of such efforts like one cause or the other. This strategy has been put to use by creative small business owners for good advantage over the years, even though the practice continues as something majorly related with larger corporations. Majority of the joint ventures get formed with the ulti mate objective of saving money. Joint ventures are so attractive because of their capability of enabling organizations for sharing both risks and costs. Joint ventures are at all times governed completely by means of legal agreements that had a role in bringing them to existence. Until and unless the joint venture is formalized through the building of any partnership or corporation, it never develops into becoming a taxpaying and legal body of its own. Instead of that the joint venture operates by means of the legal position of the venture contestants who are known as venture partners or co-venturers. As the joint venture is not considered as a legal entity, it do not have the option of hiring people, get into any contracts or face some of their own tax liabilities. All these matters get handled by the co-venturers. Joint ventures do not get governed by partnership law, corporate law and the law of sole proprietorship. As the venture gets over at the end of any particular project, t he issues related to free transferabilityand continuity of life becomes moot (Yan and Luo 2016; Johnson et al. 2013). Joint ventures are of different types. Equity based joint ventures help any foreign or local private, groups of interest, interests, or members of the common people. Inside non-equity joint ventures at this time, the parties keep looking for technical service arrangements, management contracts, one-time contracts, franchise and brand use agreements, and rental agreements. Participants at all times do not provide with capital as a part of their joint venture obligations. Joint ventures help partners in saving a lot of money and reducing their risks via capital and resource sharing. Joint ventures even provide smaller organizations with the opportunities of working with larger ones for developing, manufacturing and marketing new products. They are also known to be providing companies with opportunities for increasing sales, enhancing technological capabilities and gaining admittance to broader markets with the help of research and development underwritten by multiple parties. The invol vement of governments in the private business environment have been able to create a lot more opportunities for organizations for engaging in domestic and global joint ventures (Beamish 2013; Killing 2012). 2.Requirements for Joint Venture Agreement Inside a joint venture some of the main terms that needs to be there for protecting the best interest of TechnipFMC in this specific arrangement are discussed below. It is important that comprehension is there regarding the reasons and motivations of the party for the establishment of the joint venture prior to the considering of the proper terms for incorporating (Chang, Chung and Moon 2013). The commercial objective and purpose of the joint venture, such as medium-long term business plan, heads of agreement. A definition and valuation of the contributions that are introduced by each joint venture party, such as goodwill, licenses. The scope and nature of the obligations that are undertaken by every joint venture party, such as due diligence, indemnities, warranties. The financing of the joint venture, such as loan finance or share capital The resolution of management or voting deadlock amongst equal joint venture partners, such as detailed voting processes, termination on protracted deadlock, casting of vote by chairman. The security of any minority joint venture interest, such as preference shares, right to employ directors, definite minimum return on investment. The exit routes that are available to the joint ventures, such as rights of pre-emption, put and call options. The basis of termination of the joint venture, such as notice with or without reason, fixed-term. The wrapping up of the joint venture and the comprehension and circulation of shares or resources upon termination. Autonomous dispute resolution which includes: negotiation-conciliation-mediation, appropriate relevant law, trustworthy global institutional arbitration or unbiased legal authority. Discussing the terms to be addressed inside a joint venture with XYZ Incorporated, the first priority is to be given to the objectives. Any successful joint venture is based on both its goals and objectives, as those clarifies the main purpose of the venture and helps in the identification of the necessary actions. The main objective of any joint venture is bringing profitability to the business and operations, which is more often than not the increasing of revenue while limiting costs. Joint ventures are also carried out for reducing customer complaints and providing them with the best possible customer service. Joint ventures are also carried out for solving employee turnover problems and improve employee retention. Joint venture is a good way of becoming more efficient in business operations for increasing productivity, in turn growing the organization and its operations. The contributions of joint ventures include licensing opportunities, goodwill, technological know-how, financi al and skill expertise. The duties, rights and obligations of joint ventures are dependent majorly on the terms of contract by means of which they undertake that relationship. Each co-venturer must be contributing a share to the joint venture for promoting a common purpose. At the time when joint venture gets dissolved a co-venturer acquires the advanced capital returned (Saz-Carranza and Longo 2012). Prior to an investor focusing on the deal terms, it is vital that ensuring is done regarding the venture happening between two partners who share aligned interests and similar end objectives. Inside a joint venture, the funding clauses contain the option of loan by the parties for the joint venture. They have the option of bank funding too. Inside a joint venture, there is the need of taking into account some interests of substantial minority shareholders, who do not allow the uncontrolled power of controlling majority. Joint ventures are solely for the partners to be given the opportunity of working on any specific project. There comes a time when one or more parties might be wanting to leave the company in the end of the venture. For them, different exit strategies are there such as, initial public offering, selling of shares, selling of the joint venture, employee buyout and liquidation. In joint ventures, dissolution and termination gets governed with the help of partnership laws that are related to that. Joint ventures can be dissolved by judicial dissolution, they get over after any fixed term or specific objective is met with, or after there happens a sale of one or all the parties interests. Joint ventures get terminated due to deadlock, making parties unwilling or unable of continuing with the venture resulting in an exit (Barajas, Huergo and Moreno 2012). Inside a deadlock of a joint venture, there are needs of having a clear mechanism in the agreement to make sure of conflict resolution as that would be helpful in streamlining the procedure, avoiding confusion and fluctuations and even help save time and money. Winding up of the joint ventures happens when the resolution of the deadlock is unagreed according to the receipt of the deadlock notice sent by any party. After that the party might ask for the company to be wound up, in which all parties will be procuring that a resolution is passed for commencing such wind-up proceedings once practicable. Inside joint ventures, dispute resolution procedures are important. Possible damage and disruption that can be caused by a failed joint venture would not be something that is commonly tracked, but is something very recognizable when actually happening. Thus, it is important that a clear and fair dispute resolution procedure is set up for being the best option against these kinds of damages . Dispute resolution clauses inside joint venture agreements or something similar are more often than not very legalistic as they are generally written by the lawyers. These situations can be handled by empower management, designing of delegations of authority completely, having a release valve, refreshing the whole team and even appointing an independent consultant (Lpez-Duarte and Vidal-Surez 2013). There is an importance of understanding the reasons and motivations for the establishment of the joint venture agreement prior to considering the proper terms for incorporation. There is a need for understanding if both the parties are looking for a long-term relationship or short-term collaboration for making a fast return, if they would be equal partners, or would they be having different business plans. The terms needed for a long-term marriage-of-equals would be differing from those for a short-term venture capital joint venture. The key terms that have been set above and discussed are just a general initial check-list for joint venture agreements. The necessary terms would be depending on the joint venture business and the parties. For any joint venture agreement, and if party negotiations fail, dispute resolution carried out by an independent forum would be able of delivering a quick and enforceable decision as a necessary term. Minus this, the other terms would be ineffective (Reuer, Klijn and Lioukas 2014) References Allen, W.T. and Kraakman, R., 2016.Commentaries and cases on the law of business organization. Wolters Kluwer law business. 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