Final answer:
Joint ventures are business arrangements where companies form a new entity for a specific purpose. Characteristics of joint ventures include shared control and ownership, shared risks and rewards, specific purpose, and limited duration.
Step-by-step explanation:
Joint ventures are a type of business arrangement where two or more companies come together to form a new entity for a specific project or purpose. There are four characteristics that define joint ventures:
- Shared control and ownership: In a joint venture, all parties involved have equal control and ownership over the new entity.
- Shared risks and rewards: The risks and rewards of the joint venture are shared among the participating companies.
- Specific purpose: Joint ventures are formed with a specific purpose or project in mind. Once that purpose is fulfilled, the joint venture may be dissolved.
- Limited duration: Joint ventures are typically formed for a limited period of time, usually until the purpose of the venture is achieved.