Bharti and Airtel proved to be the biggest players in the telecom sector in 2005. Explain the concept and type of features of such an enterprise.
The concept included is that it refers to a joint venture.
- When two or more firms join together for a common purpose and mutual benefit, it is known as a joint venture. It may be private, government owned or a foreign company based organisations.
- A joint venture means pooling of resources and expertise by two or more business to achieve a particular goal.
Features of joint venture are
- It is a partnership between two firms.
- It is an activity of temporary based business.
- Profits and losses are shared in agreed proportion in this venture. In the absence of agreement, profits and losses are shared equally.
- The agreement will be terminated after completion of the venture.
- Finally, the entire assets are liquidated and liabilities are paid off.
You have rated this answer /10