Question

What is meant by Joint venture?

Answer 1

When two or more firms join together to establish a new enterprise then it is known as a joint venture. The two firms contribute capital and participate in the management of an enterprise. Firms of the same country, as well as firms of two different countries, can join together to form joint ventures. Example:- Tungabhadra Industries Ltd. of India and Yamaha Motor Company Ltd. of Japan joined together to form Birla Yamaha Ltd., Maruti Company of India, and Suzuki Co. of Japan joined together to form Maruti Suzuki India Ltd.