What are Joint Venture?
Joint ventures may mean many things, depending upon the context we are using them in. But in a broader sense, a 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.
Benefits: This form of organization enjoys certain advantages in its working which are as follows-
- Joint ventures enjoy increased resources and capacity.
- Getting into a joint venture gives companies access to new markets and distribution networks.
- Access to superior technology.
- It allows a business to come up with something new and creative for the same market.
- It enables them to operate at a low cost of production.
- It helps them establish a brand name.
Private, Public, and Global Enterprises
We have all come across different types of organizations in our daily life. There are shops owned by Sole Proprietor or big retail organizations run by a Company. Then there are people providing services like legal services, medical services, is owned by one or more person i.e. Partnership Firms. These are all privately-owned organizations. Similarly, there are other offices and places of business that may be owned by the government. There are businesses that operate in more than one country known as Global Enterprise. There are all kinds of business organizations small or large, industrial or trading, privately owned or government owned existing in our country. Since the Indian economy consists of privately owned and government-owned business enterprises, it is known as a mixed economy.
The Private Sector consists of businesses owned by individuals or a group of individuals. Whereas the Public Sector consists of various organizations owned and managed by Government.
Indian Economy (An Overview)T
Table of Content
- Forms of Organizing Public Sector Enterprises
- Changing Role of Public Sector
- What are Global Enterprises?
- What are Joint Venture?