Question

What are the three different types of venture?

Answer 1

The 3 most common types of Venture are Limited cooperation, Separate joint venture business and Business partnership.

1) Limited cooperation : The colloboration with other business is done in a limited and specific way. The two involved companies agree as per a contract on how to achieve the common objectives. Example for this is a smaller or new company which has launched ethnic or regional drinks colloborates with a national player for using its distributions network to ensure distribution of the products of the smaller or new company.

2) Separate joint venture business : A separate joint venture business like a new company is created to handle a specific contract. This is a flexible option wherein each of the involved partners own the shares in the company and mutually agree on how to run and manage the company.

3) Business Partnership : In certain cases where a limited company is not a right choice, a business partnership or a limited liability partnership (LLP) is created. There is also an option of merging the two businesses.