What factors would affect how the parties in a joint venture divide future profits? (Minumum 5 sentences please.)
7 comments:
Anonymous
said...
Profits can be divided many ways in joint venture companies, and the way they are divided depends on many factors. The profits can be divided based on the workload of each member. For example, if one owner works 40 hours a week, while another only works 20, then the owner that works more might get paid more. Or, profits could be divided based on the amount of capital put into the business initially. For example, if one owner put $10,000 into the business, but the other owner put in $15,000, then the owner that paid more initially to start the business may get paid a higher percentage of the profits. Or, the owners may agree to have the profits split equally, regardless of the amount of capital initially put into the business or the amount of work for each owner.
Some factors that would affect how the parties in a joint venture would divide future profits are endless. If one person has put in more money into the company than someone else, you would think that they deserve to have a higher percentage of the profit. However, I believe that profit should be split depending on who has put the most time into the company. You may have put in more money to the company, but that other person could have put in double or triple the hours and are seeing less of the profits.
Good being that money starts to flow in. And could work out for everyone. Seeing as how that they are 'friends' and the matters at hand are not that big.
Bad being that friends come and go, and feelings change along the way. So when someone breaks the chain, everyone suffers, sometimes. People are greedy, so dividing it, may be a hassle. One person or company may think they did more, so they think they should deserve a bigger cut in the amounts of cash made.
For the future: they could make agreements now, and make a legal document, and have everyone sign it, making it legal, so NO ONE can back out.
Dividing profits can happened in more than one way, some ways are more affective than others though. For instance, the example you gave us, if someone works more hours than the other person and strives hard and works end on end and other person works when he/she wants to and does whatever whenever the person working hard will probably recieve more money. Dividing the profits in this way can be challenging, but in my opinion the person working longer hours deserves the higher amount of pay. When it comes to doing business, not everyone cannot be treated equal. But if each person works about the same and shows the same work efforts they deserve the same amount of pay.
Profit division in a joint venture would largely depend on the amount that each partner invested to begin with. The partner that invested more would likely get more profits. The company that did more work on the project might also get more of the profits. Each joint venture will be different, and value different goods and services in making the profit division occur.
Factors that would affect how parties in a joint venture divide future profits could be to find some exchange of goods like a product each company needed. Another could be to find a percentage of the total and split that total amount by the individual parties.
Factors that would affect how parties in a joint venture divide future profits could be to find some exchange of goods like a product each company needed. Another could be to find a percentage of the total and split that total amount by the individual parties.
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7 comments:
Profits can be divided many ways in joint venture companies, and the way they are divided depends on many factors. The profits can be divided based on the workload of each member. For example, if one owner works 40 hours a week, while another only works 20, then the owner that works more might get paid more. Or, profits could be divided based on the amount of capital put into the business initially. For example, if one owner put $10,000 into the business, but the other owner put in $15,000, then the owner that paid more initially to start the business may get paid a higher percentage of the profits. Or, the owners may agree to have the profits split equally, regardless of the amount of capital initially put into the business or the amount of work for each owner.
Some factors that would affect how the parties in a joint venture would divide future profits are endless. If one person has put in more money into the company than someone else, you would think that they deserve to have a higher percentage of the profit. However, I believe that profit should be split depending on who has put the most time into the company. You may have put in more money to the company, but that other person could have put in double or triple the hours and are seeing less of the profits.
Joint Ventures may be good, and bad.
Good being that money starts to flow in. And could work out for everyone. Seeing as how that they are 'friends' and the matters at hand are not that big.
Bad being that friends come and go, and feelings change along the way. So when someone breaks the chain, everyone suffers, sometimes. People are greedy, so dividing it, may be a hassle. One person or company may think they did more, so they think they should deserve a bigger cut in the amounts of cash made.
For the future: they could make agreements now, and make a legal document, and have everyone sign it, making it legal, so NO ONE can back out.
Dividing profits can happened in more than one way, some ways are more affective than others though. For instance, the example you gave us, if someone works more hours than the other person and strives hard and works end on end and other person works when he/she wants to and does whatever whenever the person working hard will probably recieve more money. Dividing the profits in this way can be challenging, but in my opinion the person working longer hours deserves the higher amount of pay. When it comes to doing business, not everyone cannot be treated equal. But if each person works about the same and shows the same work efforts they deserve the same amount of pay.
Profit division in a joint venture would largely depend on the amount that each partner invested to begin with. The partner that invested more would likely get more profits. The company that did more work on the project might also get more of the profits. Each joint venture will be different, and value different goods and services in making the profit division occur.
Factors that would affect how parties in a joint venture divide future profits could be to find some exchange of goods like a product each company needed. Another could be to find a percentage of the total and split that total amount by the individual parties.
Factors that would affect how parties in a joint venture divide future profits could be to find some exchange of goods like a product each company needed. Another could be to find a percentage of the total and split that total amount by the individual parties.
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