Question

Name the enterprises which is the result of partnership between two companies. Why do two companies join together to work as one enterprises? Give three reasons.

Answer 1

Maruti Suzuki is a company that is formed by the partnership of two companies Maruti, the Indian manufacturer, and Suzuki, the Japanese tech-manufacturer. Explanation: Individuals and companies often enter into partnerships to create a new business entity or a new company.

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The enterprise which is the result of partnership between two companies is known as Joint Venture.

Eg: Hero Honda(hero an indian company and honda a japanese company)

The benefits of a Joint Venture are:

Expenses and costs are shared by the companies.

The initial start-up capital can be borne by both the companies thus lowering the financial burden placed on them.