(a) Define joint venture. (b) Identify any three merits of a private company over a partnership. (c) State any three sources of finance to a public enterpri...

(a) Joint venture. A joint venture is a business arrangement in which two or more independent firms (or a private firm and the government) pool resources, skills and capital to carry out a specific business project, sharing the risks, control and profits, while remaining separate organisations.

(b) Three merits of a private (limited liability) company over a partnership:

1. Limited liability. Shareholders can lose only the amount they invested, whereas partners have unlimited liability and can lose personal property.
2. Larger capital. A company can raise more capital by issuing shares to up to fifty members, while a partnership is limited to few partners.
3. Continuity of existence. A company has perpetual succession and continues despite the death or withdrawal of a member, whereas a partnership may dissolve when a partner dies or leaves.

(Other valid merits: separate legal personality, and easier transfer of ownership through shares.)

(c) Three sources of finance to a public enterprise:

1. Government grants and subventions from the national budget.
2. Loans from banks and other financial institutions (internal and external).
3. Revenue (ploughed-back profits) earned from the sale of its own goods and services.

(Other valid sources: issue of bonds/stocks and aid or loans from international agencies.)