You are a leading builder of the city running your business in the form a company. The city’s municipal corporation has invited tenders from business houses for the construction of the largest flyover of the city. You are eligible for the tender and have the technical capabilities but the amount of security deposit as well as the cost of construction of the flyover is too high and you are not ready to take such a huge risk. You have other competitors in the market who are planning for the tender but are also apprehensive because of the huge risk involved.
Please answer the following questions in view of this situation:
(a) What do you mean by Joint Venture?
(b) What are the reasons behind formation of joint ventures?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
