Page 1 - Home Assignment 15

SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES

CHAPTER -3, Public Private and Global Enterprise

Home Assignment 15Joint ventures, meaning, types, merits, public private

partnership

Joint Ventures

• When two businesses agree to join together for a common purpose and mutual

benefit, it gives rise to a joint venture.

• Joint venture is the pooling of resources and expertise by two or more

businesses, to achieve a particular goal.

• The risks and rewards of the business are also shared. The reasons behind the

joint venture often include business expansion, development of new products or

moving into new markets, particularly in another country

• Examples of Joint Ventures are AVI Oil India Pvt. Ltd., Green Gas Ltd etc

• A joint venture must be based on a memorandum of understanding signed by

both the parties, highlighting the basis of a joint venture agreement.

• Negotiations and terms must take into account the cultural and legal

background of the parties.

• The joint venture agreement must also state that all necessary governmental

approvals and licenses will be obtained within a specified period.

Equity-Based Joint Venture