What are the limitations of joint venture?

The following are the limitations of joint venture:
1. One major disadvantage of a joint venture is that the ownership of a joint venture is joint. This in turn limits the control and the return that each firm can enjoy.
2. The objectives of a joint venture are often not 100 per cent clear and communicated to everyone involved.
3. As various parties are involved in a joint venture, there is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners.
4. Different cultures and management styles may result in poor integration and co-operation.

 

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