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Theories on joint venture
Theory of joint venture
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Joint Venture Joint Venture is “a partnership, individual, or corporation that pools labor and capital for a limited period of time” (Kubasek, Brennan, Browne, 2015, p. 431). This method can increase liability and limit outside opportunities where the business can not expand their product line and have to utilize the products provided by the company they have a joint in a agreement. The mission of the coffeehouse is to be unique and special. This type of model would not allow originality and for that reason, its not recommend that Shania get involved with a joint venture.
Limited Liability Companies Limited Liability Companies (LLC) is “a form of business organization with the liability-shield advantages of a corporation and the flexibility
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There are several organizations with the same name including a Church and a Christian Center. The word “gathering” is very powerful since implement a sense of community and acceptance. As the name is already related to the Christian community it could be beneficial for Shania business, but it could also hurt her chances to be unique and attractive to the fellow Christians. In this case it is not recommend that Shania named her business “The Gathering Place” since it could lead the customers to be confused by the other organizations. However, the name is available for a trademark since in the record of the Secretary of State in Colorado, every organization that utilized the name as a trademark had expired more than ten years …show more content…
(2015). Retrieved June 23, 2015, from http://www.entrepreneur.com/encyclopedia/corporation
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Corporation – “A business organization that exists as a legal entity and provides limited liability to its owners.” (Longenecker, Petty, Palich, Hoy, Pg. 205) The main advantage of a corporation is that the business liability falls onto this entity instead of the individuals that own it. The disadvantages of this organization are found mostly in its formation. A corporation is expensive to create and requires compliance with state
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Jennings, Marianne M. Business: Its Legal, Ethical, and Global Environment. Mason, Ohio: Cengage Learning, 2008. Print.
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Twomey, D. P., Jennings, M., & Anderson, R. A. (2011) Anderson’s business law and the legal
Kubasek, N., Brennan, B., & Browne, M. (2012). The legal environment of business: A critical thinking approach (6th ed.). Upper Saddle River, NJ: Pearson Education.
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There are many advantages and disadvantages when owning your own business. When you own you own business, it’s known as a sole proprietorship. But with any type of business, there will always be advantages and disadvantages.
The joint venture strategy is playing a vital role in this regard as it is not considered to be a legal entity. Instead individuals or companies enter into contracts and make their profit and losses and they pay tax only on their own profits. In joint venture parties are no jointly and severally liable for the losses of the venture whereas in partnership each partner is jointly and severally liable for the debts of the partnership. Joint venture is similar to a partnership, so the business will prepare the joint venture agreement that will exclude the joint venture from being treated as a partnership agreement. Because If they are treated as acting as a partnership they could be subject to unexpected tax and other liabilities. To avoid joint venture from being treated as partnership, joint venture agreement will place control of the daily operation of the business in the hands of an independent operator, who is appointed by each of the participants separately. Joint venture agreement also include an express provision that liability is several and not joint. It also ensures that assets are held separately, as tenants in common. One of the key indicators of a partnerships is profit sharing so contractual joint venture agreement will ensure that the arrangements are structure to avoid
Author also talks about her own institution where budding entrepreneurs or traditional business owners are guided and coached on how to sustain and develop the business.
Dollonger, M. J. (2002). A framework for Entreprenership. In M. J. Dollonger, Entrepreneurship strategies and Resources (pp. 5-6). New Jersey.
Based on the book Entrepreneurship and Small Business Management of Roberto G. Medina’s (2014) A small business operator keeps long working hours and absorb whatever damages that happen as a result of his faulty decision-making. However, he is afforded some benefits. First, the opportunity to gain control over his own destiny. Second is the opportunity to reach his full potential. Next, the opportunity to reap unlimited profits. Lastly, the opportunity to make a contribution to society and receive recognition for his efforts. (p. 18)