Wednesday, 29 October 2008

Beware the Joint-Venture

A tale told to me by an economist on the reality of the Joint-Venture.
An undertaking with the hidden and unknown.

A hen met a friendly pig on her free ranging walk in the farm yard and struck up a warm and agreeable relationship. They exchanged confidences and the hen confessed that she was dissatisfied with her lot. She was tired of laying eggs for the benefit of others, furthermore she was becoming unattractive to the resident rooster.

The pig was sympathetic but had no advice to offer. Eventually the hen had a bright idea which she discussed with the pig. The idea was based on the fact that he too was being exploited, but if they could join forces in something called a JOINT-VENTURE they would cease to be exploited and would both benefit in terms of production and profit. They consulted the tortoise - a wise old accountant who was skilled at setting up joint ventures and after paying the appropriate fees and filling in the relevant tax forms they were able to launch HAM and EGGS Ltd. A new concept in business to increase profit to both parties.

They soon had a large order to supply ham and eggs for a large business breakfast. The hen pushed herself to the limit and laid eggs overtime, doubling her usual output. The pig in the meantime, hardly spoke to anyone and became more and more morose. Eventually he confronted the hen to dissolve the arrangement. The hen was mystified. The pig tearfully explained that in order for him to fulfill his commitments to the joint venture he would have to lose his hindquarters and probably his life in the process.

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