Discuss the following statement: "Joint ventures have unlimited life."

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05-06-2022
Business

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Discuss the following statement: "Joint ventures have unlimited life."

Sagot :

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Baraq Baraq · Answer 1 · 2022-06-07T08:13:19-04:00

A joint venture is a business organised by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

What does the statement mean?

The statement "Joint ventures have unlimited life" implies that a business that is joint ownership will always give an avenue for continuity if one dies. It also gives room for proper funding as both owners will both be financing it and hence promotes it longevity.

Therefore, the implication or meaning of the statement is that there is always available person(s) to manage the affair and bear the risk of the business. Consequently, such business die hard.

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What does the statement mean?

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