MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS STRUCTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is a join venture?
A
a member-owned business structure with at least five members, all of whom have equal voting rights regardless of their level of involvement or investment.
B
a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.
C
a legal entitie that separate from its owners and company shareholders just like private limited companies.
D
None of the above
Explanation: 

Detailed explanation-1: -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-2: -Joint ventures: an overview 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-3: -Joint venture agreements, also called JV agreements, are contractual consortiums of two parties. They usually seek to join both party’s resources to achieve a specific objective. The party’s benefit by receiving proportionately split profits and distributed ventures.

Detailed explanation-4: -A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in a partnership business, all partners share liabilities and profits equally, while in others, partners may have limited liability.

Detailed explanation-5: -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.

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