Question

define joint venture and it's major benefit​

Answer 1

hi mate ☺️

here is your answer ☺️

# joint venture

it refers to that partnership in which companies share investment, risk , management and profits in the development , production or selling of product.

# Benefits:-

1. easy entry in overseas markets:-

those companies which lack capital and human resources and want to enter the foreign market, they can do it by way of a joint venture. the foreign partner in the joint venture provides capital and human resources.

2. Risk is minimised:-

the risk generated by the lack of knowledge about working of foreign market can be minimised through a joint venture.the local partner has a full awareness of the market . in this way , the risk generated by the policies of the government can be minimised well in time.

3 . technological benefits :-

by engaging in partnership with foreign company , Indian company can enjoy the benefits of the latest and advanced technology.

4. competitive strength:-

when two companies get together to do business , certainly the strength to face the competition increases.

5. Reduction in cost:-

when two companies joint hands to carry on business ,it makes it possible to do it on a large scale. they get the benefit of the economy of the large scale of production . as a result , the cost of product is less.

☺️may this helps u☺️

Answer 2

Explanation:Joint Venture Benefits and Considerations. ... Joint ventures are structured strategic partnerships created with specific goals and results in mind. They have the potential to lead to growth and development for all types of participating businesses, from small- to medium-sized businesses to large corporations.