Searching for a Joint Venture (jv) job? If you are an expert in making joint ventures then this is for you. Do not worry, we’ve a right answer for your job interview preparation. If you are preparing for Joint Venture (jv) job interview, we will help you in clearing the interview through Wisdomjobs interview questions and answers page. Joint Venture (jv) is an entity formed by agreement of two parties where the resources of each of them are shared and worked to accomplish a task. Candidates are very less in number who are skilled in forming Joint Ventures. Good knowledge on the functionality is required for this job. Below are the Joint Venture (jv) interview questions and answers which makes you comfortable to face the interviews:
Question 1. What Types Of Joint Ventures Are There?
Answer :
There are many examples of collaborations between businesses – common ones are the following structures where two or more people share resources and risk:
The rest of this article covers the first structure above where each person in the Joint Venture has a shareholding and appoints directors.
Question 2. Who Will Be Part Of The Joint Venture?
Answer :
The people contributing the assets to the Joint Venture, or JV, will all be parties to the Joint Venture Agreement.
Answer :
Usually, Yes so that shareholders can enforce against the company.
Question 4. What Issues Do I Need To Consider When Looking For A Joint Venture Partner?
Answer :
Question 5. How Do I Negotiate Heads Of Terms?
Answer :
The Heads Terms document sets out the main principles for the Joint Venture and the steps and documents required to get it set up. Read more about negotiating Heads of Terms Agreements.
Question 6. What Is The Best Way To Structure A Joint Venture?
Answer :
- For example, a designer could simply license his or her intellectual property rights in the design to another business to exploit in return for royalty payments. You should identify what other agreements are needed between the Joint Venture and the shareholders – eg licences to use software, brand names, premises, secondment of staff etc.
Question 7. What About Financing Joint Ventures?
Answer :
You and your Joint Venture partner will need to agree:
What arrangements will there be for funding, on a continuing basis:
- Will each party be required (or entitled) to contribute to continuing calls for funding, pro-rata to its original investment or otherwise
- What happens if one of the parties defaults.
Question 8. What Assets Can Be Put Into Joint Ventures?
Answer :
Any asset can be put into a Joint Venture e.g. employees, intellectual property, offices, customers and suppliers and their related contracts.
Contributions can be by outright transfer, or by a lease or licence to the Joint Venture for a fixed or indefinite term. Separate documents will be required for the transfer of each asset to the Joint Venture .
The contributed assets will need to be valued and agreed with the Joint Venture partner.
You will need to agree if all contributions of assets can be made simultaneously, if you need any regulatory approvals or consents third parties (including lessors, licensors and lenders) or how required for any transfer. If not, the availability of all or any particular asset(s) can be a condition precedent to the establishment of the Joint Venture.
Question 9. What Legal Agreements Are Needed To Set Up A Joint Venture?
Answer :
If you are forming a new Joint Venture company, a Joint Venture Agreement and the new company’s articles of association are crucial.
Points that may be covered in these documents or in separate agreements include:
Question 10. What Is A Shareholders Agreement?
Answer :
A Shareholders Agreement can be another name for the Joint Venture Agreement. It sets out the agreement between the shareholders showing how they will operate the Joint Venture, how they will make decisions and vote as the shareholders and directors.
Question 11. What Are The Shareholders Rights In A Joint Venture?
Answer :
The shareholders will need to agree:
Question 12. What Is Minority Shareholder Protection In A Joint Venture?
Answer :
If a shareholder owns less than say 50% of the Joint Venture it may want to protect itself in the following circumstances:
The majority shareholder forcing through voting on certain important issues at shareholder meetings ( e.g. changing the business, adding new shareholders, issuing new shares, buying new businesses or selling parts of the business)
Similar protections and any remedies can apply to board and/or director level voting as well.
Question 13. How Do We Take Profits From The Joint Venture?
Answer :
Profits from Joint Venture companies are commonly distributed through dividends.
Of course, the ability of the Joint Venture to pay dividends will depend on its cashflow position. Depending on the circumstances, there may also be other more tax-effective ways of realizing part of the value of your investment in the Joint Venture. Where a Joint Venture is structured as a partnership, profits are automatically shared between the partners as specified in the partnership agreement. The partnership agreement should also specify what cash payments partners can take from the partnership. If there is no separate joint venture entity, there will be no need to ‘take’ profits from the joint venture – the profits will in any case arise within your (or your Joint Venture partner’s) business.
Answer :
Joint Bank A/C Dr xxx
To Respective Co-venture A/C xxx
Question 15. What Are The Disadvantages Of Joint Venture?
Answer :
Question 16. What Is The Difference Between Joint Venture And Consignment?
Answer :
Question 17. What Is The Difference Between Joint Venture And Partnership?
Answer :
Joint Venture involves two or more companies joining together in business. In partnership, it is individuals who join together for a combined venture.
Question 18. Name The Accounts Prepared Under The Method Where No Separate Set Of Books Is Kept ?
Answer :
Question 19. What Is Co- Ventures Account?
Answer :
This is the capital account of the venture relating to venture. This account is credited by the capital contributed by the ventures, goods supplied by them from their own stock, expenses made personally by them etc whereas this account is debited for any withdrawal or any asset taken from the venture.
Question 20. What Is Joint Venture Account?
Answer :
This account represents the results of the business, that is, profit or loss. This account is debited by the cost of goods, expenses,goods supplied by the ventures etc and are credited by sale proceeds, unsold stock, stock taken by ventures etc.
Question 21. Explain The Meaning Of Memorandum Joint Venture Account?
Answer :
It is prepared through memoranda i.e. transactions are directly entered in the Memorandum Joint Venture Account. It is merely a statement showing profit or loss on venture.
Question 22. What Is Joint Venture?
Answer :
A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.This task can be a new project or any other business activity.The venture is its own entity, separate and apart from the participant's other business interests.
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