Explain elaborately the reasons for the failure of joint venture.
Explain elaborately the reasons for the failure of joint venture.
Joint Ventures is an agreement between two or more organizations who come together to accomplish a particular task or to fulfill a particular objective. Each organization in a Joint Venture is equally responsible for the profits, losses, and any other cost associated with it. Although it is a type of partnership in a layman's language, it can form into any legal structure, which includes corporations, partnership firms, limited liability companies, etc.
The reasons for forming a joint venture can be many, like cost savings, combined investment, shared expertise, new market penetration, etc.
As we have seen why forming a joint venture can have various advantages, but if it is not properly managed it will result in a big fail, the reasons for it can be various, which can be discussed in detail.
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