Question

Discuss briefly the features of Joint Venture.

Answer 1

Answer:

Features of Joint Venture are :-

1) Agreement between the parties involved :-

In the agreement there is mention to undertake a business together and define the purpose of the business

Without a proper agreement, a joint venture can be considered invalid and might cause problems in future .

2) Sharing profit and loss :-

No business is free of risks.

By forming a joint venture, a firm can effectively deal with diversified culture, geographical differences, and increase profit generation and in this way, minimize the risk of loss.

3) Using advanced technology :-

When two or more companies come together they share their resources, such as techniques of productions and strategies of doing marketing.

Advanced technologies can be used by companies to benefit their business and to create new products.

Thus, the overall cost of the business reduces, innovation happens, and profits increases.

4) Contribution :-

The 2 form contributes capital and participate in the management of the enterprise.

NOTE :-

Firms of same country as well as Firms of two different countries can join together to form joint venture

hope it helps you mark as brainliest please