Definition:
A Joint Venture (JV) is a cooperative enterprises entered into by two or more business entities. Sometimes the joint venture creates a separate corporation, limited liability company, or partnership. In other cases, the individual entities retain their individuality and they operate under a joint venture agreement. In any case, the parties in the JV share in the management, profits, and losses, according to a joint venture agreement (contract).
Joint ventures are often entered into for a single purpose - a production or research activity. But they may also be formed for a continuing purpose.
Common Misspellings: Don't confuse a JV with a 'qualified joint venture,' - a specific taxation form for husbands and wives in partnerships.
Examples:
Mining and drilling are expensive propositions, and often two companies in these industries will combine as a joint venture to mine or drill in a particular area.
