GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Two businesses working together for a limited time
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Two businesses joining up forever
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Two businesses who have split stock
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None of the above
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Detailed explanation-1: -A joint venture is a combination of two or more parties that seek the development of a single enterprise or project for profit, sharing the risks associated with its development. The parties to the joint venture must be at least a combination of two natural persons or entities.
Detailed explanation-2: -Although a joint venture is very similar to a partnership, a joint venture is generally more limited in scope and duration. A joint venture is generally considered to be a partnership for a single transaction. The rights and liabilities of joint venturers are governed by the principles applicable to partnerships.
Detailed explanation-3: -In a joint venture, two or more companies join together to collaborate on a particular project. Through their collaboration, the companies share resources, profits, losses and expenses.