Question

Write short answer to the followings.

State the features of Joint venture.

Answer 1

The following are some of the main features of a joint venture:
i. Joint collaboration- Joint venture is a type of organization jointly formed by two or more organizations for mutual benefits. It is done for a specific purpose or for a fixed period of time.

ii. Risk sharing- Business organizations engaged in joint ventures not only share their physical, financial and human resources but also the risks and profits of the business.

iii. Venture with foreign countries- A joint venture can be formed between organizations belonging to different countries.

iv. Innovation- A joint venture uses new and modern technology as less investment and effort are required at the individual level.