There are several reasons for several parties to establish a joint venture company, including:
a. Combining Resources
To carry out its operations, of course, an entity needs more resources to ensure the success of its business. This joint venture business can combine resources owned so as to create a larger entity.
b. Combining Expertise
In the business world usually a company has its own advantages. For this reason, joint ventures can combine the expertise of each entity. So that the new entity will have many advantages. It is not uncommon for companies formed with joint ventures to succeed with their products because of the combination of expertise from more than one entity.
c. Saving money
The existence of two entities or companies that join then they can save each other’s money of course. Financial costs are not borne by one company. But it is borne by more than one company.
Benefits of Joint Venture
Some of the benefits of doing a joint venture are:
– Risk limitation
– Saves energy
– The possibility of optimization of know-how
– Possibility of concordance (interdependence)
To facilitate the management of company finances, you can use Journal assistance. Journal is a cloud-based online accounting software that helps you store all data and financial reports safely. Journals can also help you make financial reports according to the standards used.