Entrepreneurship Development and Communication Skills

7.4.1.Joint Venture

Joint venture is one of the types of external strategy followed by business concerns. It is a temporary partnership between two or more firms to undertake joinly to complete a specific venture. The parties entering the venture by means of an agreement are known as co-ventures. The agreement entered will come to an end on the completion of the work for which it was formed. The co-ventures take part in the operations of the ventures equally and share the profits or losses in their agreed ratio. However, in the absence of such agreement, the profits/losses are shared equality.