NAME : Smit Vyas

Roll No : 48 Subject : A.F.S

Topic : Joint Venture

Joint Venture
A joint venture takes place when two parties come

together to take on one project. In a joint venture, both parties are equally invested in the project in terms of money, time, and effort to build on the original concept A joint venture can ensure the success of smaller projects for those that are just starting in the business world or for established corporations , a joint venture allows both parties to share the burden of the project, as well as the resulting profits.

Features of a joint venture

It is formed by two or more persons.
The purpose is to execute a particular venture or project No specific firm name is used for the joint venture

business. It is of a temporary nature. Hence, the agreement regarding the venture automatically stand terminated as soon as the venture is completed The co-ventures share profit and loss in the agreed ratio. However, in the absence any other agreement between the co-ventures, the profits and loss are to be shared equally.

Advantages of a joint venture

1. Access to new markets: by engaging with a foreign collaborator, the products and services can be marketed in a foreign country. 2. Sharing of costs and risks with partners. 3. Diversification of business by producing new products or new area of business. 4. Increased productivity and grater profits

Disadvantage in the joint venture

1. It take time and efforts to form the right relationship. 2. The objectives of each partner may differ. The objectives needs to be clearly defined and communicated to everyone involved. 3. Imbalance in the share of capital, expertise, investment etc.

Disadvantage in the joint venture

1. It take time and efforts to form the right relationship. 2. The objectives of each partner may differ. The objectives needs to be clearly defined and communicated to everyone involved. 3. Imbalance in the share of capital, expertise, investment etc.

Thank You