Concept Of Joint Venture

Concept Of Joint Venture

A joint venture is a kind of temporary trading relationship between two or more parties who undertake jointly to carry out a specific project or venture like construction of roads or bridges,underwriting of shares etc.

The parties may be individuals, partnership firms,companies etc.When the venture or project will be completed a trading relationship between co-ventures comes to an end.A person can also become a co-venture without contributing any capital in cash just because of his wisdom for example an engineer.

There is no specific name of the firm.Profit of the joint venture is the difference between total cash received and total cash paid.Joint venture can’t be a continuing partnership because end or termination is certain.So it is not a going concern.After the venture will finish the business will get dissolved.

 

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