What are the motives for a joint venture explain with an example of a joint venture?
As there are good business and accounting reasons to create a joint venture with acompany that has complementary capabilities and resources, such as distributionchannels, technology, or finance, joint ventures are becoming an increasingly commonway for companies to form strategic alliances. In a joint venture, two or more "parent"companies agree to share capital, technology, human resources, risks and rewards in aformation of a new entity under shared control. Broadly, the important reasons forforming a joint venture can be presented below:
Internal Reasons to Form a JVSpreading Costs:
You and a JV partner can share costs associated withmarketing, product development, and other expenses, reducing your financialburden.
Opening Access to Financial Resources:
Together you and a JV partner mighthave better credit or more assets to access bigger resources for loans and grantsthan you could obtain on your own.
Connection to Technological Resources:
You might want access to technological resources you couldn't afford on your own, or vice versa. Sharing innovative and proprietary technology can improve products, as well as your own understanding of technological processes.
Improving Access to New Markets:
You and a JV partner can combine customer contacts and together even form a joint product that accesses new markets.
Help Economies of Scale:
Together you and a JV partner can develop products or services that reduce total overall production expenses. Bring your product to market cheaper where the customer can enjoy the cost savings.
External Reasons to Form a JV
Develop Stronger Innovative Product:
Together you and a JV partner may be able to share ideas to develop a product that is more competitive in your industry.
Improve Speed to Market:
With shared access to financial, technological, and distribution resources, you and a JV partner can get your joint product to market faster and more efficiently.Strategic Move Against Competition: A JV may be able to better compete against another industry leader through the combination of markets, technology, and innovation.
You may find a JV partner with whom you can create synergy, which produces a greater result together than doing it on your own.
Share and Improve Technology and Skills:
Two innovative companies can share technology to improve upon each other's ideas and skills.Diversification -
There could be many diversification reasons: access to diverse markets, development of diverse products, diversify the innovative working force,
joint venture companies Read More
The four types of joint venture are licensing, contract manufacturing, management contracting, and joint ownership Read More
subcontractor join to main contractor to form joint venture but that venture is not partnership Read More
joint venture, each partner provides inputs and absorbs outputs Read More
Possibly. It depends, in part, upon the structure of the venture. For example, in a partnership, you may need unanimous consent of the other partners before offering your portion outside of the partnership itself. If the joint venture is merely a contractual relationship between two companies, the contract will often prevent either member of the joint venture from disposing of its interest without the consent of the other member. Read More
A joint venture is a general partnership, meaning that every venturer is personally liable for all debts of the venture. Read More
An example of a joint venture in Kenya is telecommunications jobs being sent to Kenya to reduce the overall overhead of a business. Read More
Wahaha Joint Venture Company was created on 1996-03-28. Read More
Joint Venture - album - was created on 2005-11-15. Read More
The Joint Venture is temporary partnering and alliance but Merger is permanently combination. Read More
BHPBilliton is a joint venture with a British Company and an Australian company formed to combine the resources exploration competencies of both companies. Joint ventures are usually formed when two or more companies want to dig stuff out of the ground but cannot afford to do that on their own. Other examples of joint ventures do happen in other industries. Read More
If taxed as a partnership why is a joint venture different. why is it not considered a partnership too Can a member of the joint venture spend whatever they want without consulting the other member Read More
When two parties or more join together and work on the same project,they form the joint venture.he joint venture is legally separated from the two parties but the parties can control over it.Usually,forming a joint venture have a specific purchose with specific time limit.Diferent parties can contribute different aspects likes knowledge,capital,experience,assets to the joint venture. Read More
Global One, a joint venture of Deutsche Telekom, France Telecom, and Sprint. Read More
In Joint venture two or more companies joint together to work on any project while in partnership two or more partners joint together to form business. Read More
List out Indian companies enteringin joint venture with foreign companies and list out the benefits?
Some benefits of an Indian company entering into a joint venture with a foreign company include: maximizing resources, economies of scale, and a stronger potential for creative input based on a wide range of people and experiences coming to the table. An example of an Indian company that is part of a joint venture with a foreign company is Avi-Oil Indian Pvt. Ltd. Read More
At the joint Read More
This was a joint venture between two companies not two countries. The two companies involved in the venture are General Electric in the US and FANUC Ltd. in Japan. Read More
A joint venture is a business you enter into with another person. Joint ventures are also called partnerships. To protect your personal property, consider incorporating your partnership. Read More
What is the difference between a joint venture equity strategic alliance and non-equity strategic alliance?
The purpose of equity alliance is less specific than a joint venture. Unlike a joint venture, one partner retains control through their majority shareholding in an equity alliance. Read More
Syndicate is a informal arrangment and will be disbanded once the objecive is attained. Joint Venture is legal long term arrangment with a common objective. Read More
A joint venture is some financial venture taken by two or more parties that maintain their own identities. In this case, intra-firm means that all of the parties involved are within the same company. Read More
IT cannot be called as JV. Honda is a technology partner. Honda is Helping the Hero Honda by giving technology and in return the get the the brand name as well as the company share. Example for Joint Venture would be Bharati-Walmart. Read More
dfdfdfdsf Read More
The cast of Joint Venture - 1998 includes: Lisa Coleman as Angel Stephen Graham as Ace Birdy Sweeney as Arthur Read More
What a joint venture in a business contract is considered is self-explanatory. In other words, it would be a contractual agreement where two companies are joining together. Read More
I don't know. Is it something you earn by doing business with a joint owner? Read More
The cast of Joint Venture - 1994 includes: Nina Franoszek as Liane Tad Horino as Harada Gen Seto as Japanese Driver Read More
No, a joint venture can take many forms. It may simply be a contractual relationship between two companies, or it may be a separate corporation, partnership or limited liability company. Read More
A joint venture spreads the risk of the business between multiple people. If the business fails, then one person wouldn't have to cover all the losses. Read More
Q.9 Drive your beat is a joint venture between apparel brand Levi's and which car brand? Read More
The Disadvantages of Joint Ventures are the possibility of being ripped off or disappointed by unscrupulous and unprofessional JV partners, and hurting your reputation and/or customers and associates by associating with the wrong people, even unknowingly. There is a way to locate and contact really solid JV partners, however. The DollarMakers Joint Venture Forum might be the solution for you. We carefully screen Members and the support and education provided are very effective. For more… Read More
A Joint Venture. Read More
joint venture can be considered as special partnership achieving a determine task.in partnership and joint ventures two or more persons are occupied in the business activities with the motive of earning profit.To start these businesses there should be an agreement. Read More
If there is a joint venture between two companies. Each of the companies, under the equity method, only records half of the income from the joint venture on the income statement-nothing on balance sheet. With the proportionate consolidation method, the parent companies record half of the liabilities and assets from the joint venture. Read More
A joint venture is typically a business agreement between two or more businesses for the purpose of a mutually beneficial sales transaction for a product or service. Each party will combine resources and agree upon a shared percentage of the profits or a fee. For example, a mortgage broker may agree to pay a real estate agent a percentage of all profits (or a specific fee like $150), for every qualifying referral from that specific… Read More
Starting a join venture means you don't have to invest all of your money. You and your partner will also share the risks. Read More
vouching implies Read More
I am concerned about scams Read More
Its in chennai. Read More
hero honda Read More