COMMERCE TREASURE

JOINT VENTURES Business organisations as you have studied earlier can be of various types private or government owned or global enterprises.  Now, any business organisation if it so desires can join hands with another business organisation for mutual benefit. These two organisations may be private, government-owned or a foreign company.  When two businesses agree to join together for a common purpose and mutual benefit, it gives rise to a joint venture.  Businesses of any size can use joint ventures to strengthen long-term relationships or to collaborate on short term projects.  A joint venture can be flexible depending upon the party's requirements.  These need to be clearly stated in a joint venture agreement to avoid conflict at a later stage. A joint venture may also be the result of an agreement between two businesses in different countries.  In this case, there are certain provisions provided by the governments of the two countries, which will have to be adhered to. Thus, we

Statutory Corporations : Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament.  The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. This is a corporate body created by the legislature with defined powers and functions and is financially independent with a clear control over a specified area or a particular type of commercial activity.  It is a corporate person and has the capacityof acting in its own name.  Statutory corporations therefore have the power of the government and considerable amount of operating flexibility of private enterprises. Features Features Statutory corporations have certain distinct features, which are discussed as below: (i) Statutory corporations are set up under an Act of Parliament and are governed by the provisions of the Act. The Act defines the objects, powers and privileges of a statutory corporation; (ii) This type of o