Explain the General Nature of Joint Venture Arrangements

Question

Examlex · Accepted Answer

The Answer is A joint venture arrangement usually involves a number of participants pooling resources to jointly control and manage a specific project or business undertaking.For a wide variety of reasons,the individual participants in such arrangements have a preference to engage in the project jointly with other parties,rather than undertaking the project alone.In general terms,a joint venture relationship can be described as "an arrangement involving the cooperative efforts and utilisation of the resources of two or more separate entities working together to accomplish agreed- upon goals" (Morris,J.M.(1987)Joint Ventures: An Accounting,Tax,and Administrative Guide,John Wiley & Sons,New York,p.1).The usual distinguishing features of joint ventures are that they involve a small number of participants engaging in a specific project or business undertaking that is carried on for the mutual benefit of all venture participants.The participants,referred to as the venturers,share in the risks and rewards of the joint venture undertaking.

Explain the General Nature of Joint Venture Arrangements

Definitions: