Question

State the benefits of Joint venture.

Answer 1

 Benefits of joint ventures include: access to new markets and distribution networks. increased capacity. sharing of risksand costs (ie liability) with a partner.

Answer 2

Answer:

Explanation:

Joint Venture refers to a business arrangement in which two or more parties or organizations share the ownership, return of investment, expense, governance, profit, etc.

The following are some of the benefits of Joint Venture:

1. Economies of Scale

It helps the organizations to increase their scale of production with their limited capacity.

2. Open New Markets and Distribution Networks

When two or more organisation join hands together it  gives them an opportunity to cover a huge market which give them a chance to grow and develop further.

3. Innovation

Joint venture provides with the opportunity of upgrading the products and services with the help to technology which helps the product to be cost effective. Various innovative schemes and ways are adopted for the marketing of the product.  

4. Cost of Production

The main objective of joint venture is to offer the product to the customer at  reasonable price. This can only be achieved when there is a reduction in the cost of production or services.

5. Branding

Joint venture helps in the creation of a separate brand name.This provides  the product with a distinctive look and recognition . An established company with a goodwill help another organization in the joint venture in gaining a competitive edge over other organisation in the market.

Hope this helps.