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 choices.

Question

Quizplus · Accepted Answer

The ownership of the company created by a joint venture is usually a matter to be negotiated between the companies engaged in the venture. There is no fixed rule or standard way of dividing the ownership, as it can depend on various factors such as the contribution of each company in terms of resources, expertise, and market share. It is essential that the ownership structure is agreed upon and documented in the joint venture agreement to avoid any disputes or confusion later on. Therefore, option B is the correct answer.

Ownership of the Company Created by a Joint Venture