National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

A joint venture typically has what type of duration?

1. Permanent

2. Indefinite

3. Limited time

4. As long as the market allows

The correct answer is: Limited time

A joint venture is typically established for a specific purpose and generally has a defined scope and time frame, which is reflected in the correct answer indicating a limited duration. This means that the parties involved in the joint venture agree to collaborate for a set period or until they accomplish a particular goal or project. Once the objective is achieved, or the set time expires, the joint venture can be dissolved. While some joint ventures may have provisions for extension or can be renewed, they are not meant to be permanent or indefinite arrangements. Instead, they are usually formed in response to particular opportunities or circumstances, meaning the collaboration will cease once those conditions are no longer relevant or beneficial.