Question

. Briefly explain the concept of a Joint Venture -why are these diversification efforts so ineffective and short-termed? If you disagree, explain why.

Answer 1

A joint venture is a project where two or more parties pool up their funds together. A formal agreement is made and parties come together for a single project or multiple project. This is different from partnership because the parties are not from same company and might even be from different countries. Joint ventures help in large projects where a single person or company cannot fund the whole project. However it has some problems like misunderstandings between the parties which might have negative effect on the project. But these terms are not ineffective because they have a lot of effect on projects which require large investment sand only these terms can make such projects successful. So they are not ineffective and short termed.