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marusya05 [52]
3 years ago
7

Suppose Kim Ping and Abdel decide to set up a joint venture. Working together, the two companies will build a new, independent m

anufacturing facility in Morocco. What problems might Kim Ping and Abdel encounter with their joint venture?
Business
1 answer:
harina [27]3 years ago
5 0

Answer:

Kim Ping and Abdel will have trouble when it comes to equality in a joint venture. There is always one partner who earns more than the other.

Kim Ping and Abdel will face<em> "conflict of interest." </em>Every individual has his own purpose in making a profit.

Explanation:

"Join venture" refers to the<em> merging of two parties</em>, including their resources, in order to accomplish a project or start a new business. This means that the company profits and losses will be shared by both parties.

However, it is said that "there is no such things as equal partners." There is always a chance that one party will earn more than the other, or the other party will contribute more than the other.

There is also a possibility of "conflict of interest" in such situation. Every partner has his own beliefs and style of running a business. This will cause a conflicting interest in both parties.  

These are the possible problems that Kim Ping and Abdel might encounter.

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