Question

What are the salient features of joint ventures? Explain​

Answer 1

Answer:

There are several occasions when businesses face difficulties like shortage of funds or lack of technological knowledge. This generally happens during the diversification of a product line or entry into a new market. Joint ventures can play a huge role in these situations. Before we understand how joint ventures function, let’s first figure out the meaning of joint ventures.

Answer 2

In a typical manner when two or more persons join together to carry out a specific business venture and share the profits onto the agreed basis, it is called as a ‘joint venture’. Each one of them who used to join in as a party to the joint venture is called ‘Co-venturer’. No firm name is used normally as a specific for the joint venture business because its duration is limited to a short period. During this period, the - co-venturers are in a free state to carry on their own business as usual, unless agreed otherwise. The Business relationship amongst the co-venturers shall come to an end as soon as the venture is completed.

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