Question

What is Joint Venture ? Explain its advantages and limitation.

Answer 1

The joint venture is a commercial enterprise in which two or more companies join their forces to gain a tactical and strategic edge in the market.

Advantages are 1) – You get to save money by sharing advertising and marketing costs
2) Your potential will virtually be limitless
3) New insights and expertise

4 – Both parties share the risks and costs
5 – Joint ventures can be flexible

Disadvantages are

1) Flexibility can be restricted
2) There is no such thing as an equal involvement.
3) Limited outside opportunities
4) A lot of research and planning are necessary
5) It may be hard for you to exit the partnership as there is a contract involved




Hope it helps !!