0.1 Amko Ltd., an American company is manufacturing a high quality products, which is very popular
in America. The company is searching for the possibilities of exporting its product to foreign
countries. After a thorough search on the internet it arrived at the conclusion that India can be a good
market for its products. But the company is unaware of the distribution system in India. Now the
company is looking for such a company which is already established in India and has a strong
distribution system. Once again it searched on the internet and found that there was an Indian
company named 'Surya Ltd.' which was facing severe financial constraints, but it had a very strong
distribution system. Amko Ltd. negotiated with Surya Ltd., and both the companies made an
agreement to jointly run their businesses. In this way the American company, with the help of Surya
Ltd., got a good experience of entering the foreign markets.
(a) Identify the type of business enterprise formed by merging Surya Ltd. with Amko Ltd.
(b) State any four features of such a business enterprise.
5 marks
Answers
Answer:
yuh I don't know how much you want me this way but I don't want this anymore but you can do we just don't think it was the best way for me this is a bad idea
Answer:
Joint Venture
Explanation:
(A) The correct answer would be joint venture we can say because
Amko Ltd. negotiated with Surya Ltd., and both the companies made an
agreement to jointly run their businesses. In this way the American company, with the help of Surya
Ltd., got a good experience of entering the foreign markets.
(B)Features of Joint Venture
1. Agreement between the parties involved
2. Companies create synergy in Joint Venture
3. Shared profit and loss
4. Shared control
5. Shared Expertise and resources
6. Limited duration of joint venture
7. Use of advanced technology in Joint Venture