Business organisations can be of various types
private or government owned or global
enterprises. Now, any business
organisation if it so desires can
join hands with another business
organisation for mutual benefit. These
two organisations may be private,
government-owned or a foreign
company. When two businesses agree
to join together for a common purpose.
and mutual benefit, it gives rise to a
joint venture. Businesses of any size
can use joint ventures to strengthen
long-term relationships or to
collaborate on short term projects. A
joint venture can be flexible depending
upon the party’s requirements. These
need to be clearly stated in a joint
venture agreement to avoid conflict at
a later stage.
A joint venture may also be the
result of an agreement between two
businesses in different countries. In this
case, there are certain provisions
provided by the governments of the two
countries, which will have to be
adhered to.