Types of Businesses Flashcards
1
Q
What is a joint venture?
A
A joint venture is where a separate business entity is created by two or more entities.
2
Q
What are the benefits of setting up a joint venture?
A
A joint venture allows the risks of a project to be shared with another party. This allows businesses to specialise in their own area of expertise, which can lead to synergetic efficiencies increasing productivity lowering unit costs. It also makes it easier to break into foreign markets.
