Question

Joint ventures can be for long term relationship or short term projects.

• A. True
• B. False

Answer 1

The correct option is A True

The reason for a joint venture is usually some specific project. Joint ventures can be informal (a handshake) or formal, and they can be short term or long term. Often the joint venture creates a separate business entity, to which the owners contribute assets, have equity, and agree on how this entity may be managed.