BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a takeover of one business by another to create a much larger business
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a decision by two companies to raise prices together
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an agreement by two or more businesses to set up a new operation together sharing profit and risks
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an agreement between two people to create a business partnership which shares profits between them
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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: -A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Each of the participants in a JV is responsible for profits, losses, and costs associated with it.
Detailed explanation-3: -A joint venture is 2 or more people, companies or organisations who work together for specific purpose or project, rather than as an ongoing business. You may decide to enter into a joint venture agreement for short and long-term projects, such as to: research and development.
Detailed explanation-4: -What Is a Merger? A merger is an agreement that unites two existing companies into one new company. There are several types of mergers and also several reasons why companies complete mergers. Mergers and acquisitions (M&A) are commonly done to expand a company’s reach, expand into new segments, or gain market share.
Detailed explanation-5: -Some of the major risks involved with joint ventures are: Lack of clarity regarding the obligations and responsibilities of each of the partners. Clash in the management styles and techniques of different partners, leading to frequent conflict.