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Features, Merits and Demerits of Joint Venture Video Lecture | Business Studies (BST) Class 11 - Commerce

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FAQs on Features, Merits and Demerits of Joint Venture Video Lecture - Business Studies (BST) Class 11 - Commerce

1. What are the main features of joint venture commerce?
Ans. Joint venture commerce involves two or more companies forming a partnership to pursue a specific business opportunity. It combines the resources and expertise of the partnering companies to achieve mutual benefits and growth.
2. What are the merits of engaging in a joint venture commerce?
Ans. Engaging in a joint venture commerce offers several merits, such as sharing of risks and costs, access to new markets and distribution channels, leveraging partner's expertise and resources, and increased competitiveness through synergies.
3. What are the demerits or disadvantages of joint venture commerce?
Ans. Joint venture commerce also has its demerits, including the potential for conflicts between partners, loss of control over certain business aspects, complexities in decision-making, and the need for extensive planning and coordination between partners.
4. How does joint venture commerce help in expanding into new markets?
Ans. Joint venture commerce allows companies to expand into new markets by leveraging the local knowledge and established networks of their partners. This can help overcome barriers to entry, navigate cultural differences, and access distribution channels that would otherwise be challenging to establish individually.
5. Is it common for joint venture commerce to result in conflicts between partners?
Ans. Conflicts between partners in joint venture commerce can occur due to differences in management styles, strategic goals, or decision-making processes. However, proper planning, clear communication, and a well-defined agreement can help minimize conflicts and ensure a successful partnership.
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