limitations of joint ventures?

Answer 1

just make it legal

Answer 2

Small business owners should not engage in joint ventures without adequate planning and strategy. They cannot afford to, since the ultimate goal of joint ventures is the same as it is for any type of business operation: to make a profit. Experience dictates that both parties in a joint venture should know exactly what they wish to derive from their partnership. There must be an agreement before the partnership becomes a reality. There must also be a firm commitment on the part of each member to the project and to one another. One of the leading causes for the failure of joint ventures is that some participants do not reveal their true business agendas, or mislead their partners about their ability to uphold their agreed-upon responsibilities.

Many small business consultants counsel clients to approach joint ventures cautiously. They acknowledge that such partnerships can be most valuable in nourishing a company's growth and stability, but also point out that smaller businesses usually have far less margin for error than do multinational corporations, or even mid-sized companies. Some experts recommend that business owners considering a joint venture with another establishment (or establishments) launch a small joint venture first. Such small projects allow companies to test the relationship without committing large amounts of money. This is especially true when companies with different structures, corporate cultures, and strategic plans work together. Such differences are difficult to overcome and frequently lead to failure. That is why a "courtship" is beneficial to joint venture participants.

Other factors that can have a debilitating impact on joint ventures include marketplace developments, lagging technology, partner's inability (rather than reluctance or refusal) to honor their contractual obligations, and regulatory uncertainties. Another problem with joint ventures concerns the issue of management. The managers of one company may be more adept and/or decisive with their decisionmaking than their counterparts at the other company. This can lead to friction and a lack of cooperation. Projects are doomed to failure if there is not a well-defined decisionmaking process in place that is predicated on mutually recognized goals and strategies.

Answer 3

There is as such no limitations if venture is defined properly. If well defined this can be the best things for a business, especially you get to learn partner's technology. You get good business, partner's market goodwill, etc. So limitations is defined by how you maintain and manage the relationship.

Answer 4

The success or failure of any one of the joint venture partner would spoil the entire venture.

Answer 5

Conflicts may arise between the parties who are involved in the joint ventures....Conflicts either in decision making or something else...