Since all joint ventures are created for a specific purpose, they generally come to an end once that purpose is fulfilled. This agreement states details like their obligations, profit/loss sharing ratios, their rights and liabilities, etc. the co-venturers, generally execute a written agreement between them. They generally state this purpose clearly in their agreement. Parties create joint ventures keeping pre-determined purposes in mind. Features of Joint VenturesĪ joint venture typically has the following features. Now that we have the meaning of joint ventures and some examples of them out of the way, let’s take a look at their features. People generally create such ventures in India for construction activities, trading businesses and manufacturing industries. Individuals also can create joint ventures for similar purposes. Ltd, working in the automobile and insurance industries, respectively. Other popular Indian joint venture companies include Mahindra-Renault Ltd and Bharti-AXA General Insurance Co. India’s famous Hindustan Aeronautics Ltd. A company that manufactures aircraft can enter into joint ventures with other companies for supplying it with special parts and they both together can enter newer markets. Requirements for large capital amounts and access to technology are typical characteristics of this industry. Let’s take the example of the airline industry. People also form joint ventures to reduce their risks while entering new markets. Most joint ventures are formed when business groups or individuals lack funds or technical knowledge and expertise. Now that we are clear with the meaning of joint ventures, let us now understand the concept better using some examples.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |