Discuss the characteristics and equity forms of joint ventures.

Discuss the characteristics and equity forms of joint ventures.

Look up the answers and analyze the correct answers (1) Six characteristics of a joint venture:

① It must be an independent legal entity;

(2) Investors from at least two countries;

(3) * * * providing equity capital;

(4) The joint venturers share certain management responsibilities;

⑤ * * Share all risks of the company;

⑥ Except sharing the net income, neither party may obtain any other income from the joint venture.

(2) Joint ventures have three basic forms of equity: majority equity joint ventures (greater than 565,438+0%), minority equity joint ventures (less than 49%) and reciprocal equity joint ventures (50% to 50%). The form of equity is the most important factor that affects investors' control over enterprises. As far as the equity content is concerned, the capital investment of foreign joint venture subsidiaries is not limited to cash, but also includes materials, expertise and patents. As far as the forms of joint ventures are concerned, there are mainly limited liability companies and joint-stock companies, and a few are unlimited liability companies.

See textbook P23.

Answer analysis

Knowledge points of this topic: foreign direct investment,

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