Joint Ventures
What Is a Joint venture?
A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task
What is the definition of profit?
Profit is the money you have left after paying for business expenses.
3 Advantages of a Joint Venture?
1.Shared investments
2.Shared expenses
3.Enhanced credibility
1.Communication is not great
2.Work isn’t distributed equally
3.Different cultures and management styles pose barriers to operations
Give an example of a Joint Venture.
1.Google ane NASA to create google earth
2.Microsoft and General electric
3.BMW and Brilliance Auto Group
What Makes a profit?
A business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question.
What are the main reasons to form a Joint Venture?
To reduce costs!
What is most likely to occur during a joint venture?
Arguments and disagreements
what are the risk factors of a joint venture?
Lack of clarity
What the name of the party to joint venture?
Co-Venturers
What is a loss profit?
Profit loss is What you've earned minus what you've spent
The Private Sector Consists of businesses owned by who?
Individuals
What is a good reason to form a joint venture?
business expansion, development of new products or moving into new markets, particularly overseas.
How do you structure a joint venture?
Collaboration
Does a Joint Venture have limited or Unlimited Liability?
Unlimited Liability
To Find Out Profit or loss of Joint Venture what type of account is prepared?
A Joint Venture Account
What is the difference between a Joint Venture and a Partnership?
A joint venture involves two or more persons or entities joining together in particular project, whereas in a partnership, it is individuals who join together for a combined business.
what are the four types of joint ventures?
Project based, functional based,vertical and horizontal
Simple example for a joint venture?
Cardigan venture between Microsoft and General Electric in 2011
Explain in your own words What a Joint Venture is?
A Joint Venture is when two or more company’s come together to sign an agreement to start a project.
Is profit percentage the same as cash flow?
No, there are differences between the two
What are the main reasons companies peruse Joint Ventures for?
To Share risks for major investment
In case of Joint Venture businesses, the method of accounting to be followed is decided by Who?
The Parties involved in the project.
Is McDonalds a Joint venture?
The company has entered into a new joint venture with CITIC Limited, CITIC capital, and Carlyle capital.