What are the salient features of joint ventures? Explain
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Answer:
Salient Features of Joint Venture. Agreement: Two or more firms come to an agreement, to undertake a business, for a definite purpose and are bound by it. Joint Control: There exist a joint control of the co-venturers over business assets, operations, administration and even the venture.
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Answer:, the essential features of a joint venture can be listed as follows:
1. It can be formed by two or more persons.
2. The purpose is to execute a specific venture or project.
3. No specific firm name is used (in most of the cases) for the joint venture business.
4. It is of a temporary nature only. Hence, the agreement regarding that venture will automatically stand out to be terminated as soon as the venture is completed.
5. The co-venturers share their profit and loss in the agreed ratio. However, in the absence of any other agreement required between the co-venturers, the profits and losses are to be shared equally.
6. During the tenure of a joint venture, the co-venturers are set free to continue with their own business unless agreed otherwise.
Explanation: