Ownership of the company created by a joint venture
A) is split 50/50 between the two joint-venturing companies.
B) is usually a matter to be negotiated between the companies engaged in the venture.
C) automatically goes to the largest company engaged in the venture.
D) automatically goes to the smallest company engaged in the venture.
E) none of these.

Question

Quizplus · Accepted Answer

The ownership of the company created by a joint venture is not automatically divided equally between the two companies involved. It is usually a matter that needs to be negotiated between the two companies engaged in the venture, based on the resources they contribute, investment made, and risk involved. Therefore, option B is the best choice. The other options are incorrect as they assume an automatic transfer of ownership based on the size of the company involved, which is not the norm.

Ownership of the Company Created by a Joint Venture