Definition of Joint Venture

A Joint Venture is a legal entity created by two or more businesses joining together to conduct a specific business enterprise with both parties sharing profits and losses.
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There must be a legal entity. If there is no legal entity for the joint venture, the partnership is simply a strategic alliance, rather than a joint venture.

In a joint venture, both firms share in the efforts and in the profits or loss. The requirements of each firm are outlined in a joint venture agreement.

Joint Venture References On This Site

These Gaebler.com articles mention this glossary term:

Economic Derivatives - Economic derivatives were first issued through a joint venture between Goldman Sachs and Deutsche Bank in 2002. Neither...
How To Start Exporting - You can accomplish this through agents, distributors, or joint ventures. Use the contacts you established in Step 2 to...
VAT Benefits - Many large corporations prefer to do business abroad in many instances, and engage in joint ventures and partnerships with international firms in order to reap...
Taxes on Husband and Wife Businesses - Under this new legislation, husband and wife small businesses can be categorized as qualified joint ventures if they meet certain IRS criteria...
The Automotive Industry in China (Part 2 of 2) - However, as Chinese automakers gain experience from interacting with the market and partnering with foreign auto makers in the form of joint ventures, quality has increased dramatically in recent years...
Body Language in Business: An Introduction - This can especially useful when an entrepreneur is involved in negotiating venture capital terms or a joint venture. It is a great tool to see who is...
How Melissa Cassera Went From Ad Sales Rep to Starting a Publicity Firm - Open your eyes to new possibilities and opportunities, look for joint ventures, non-profit partnerships or investors...
Franchising in China (Part 4 of 4) - Foreign franchisors can consider entering China via joint ventures with local Chinese who have a degree of experience...
Why Do Companies Acquire Other Companies? - In short, the rationale for pursuing an acquisition boils down to the acquisition being a better option than building a company from scratch or achieving an objective through joint ventures and other alliance strategies...
Considerations in Selecting a Joint Venture Partner - In order to pick a good joint venture partner, you need to consider what the partner brings...
Robert Mondavi and The Mondavi Brand - Moreover, joint ventures with other wineries such as Opus One have allowed...
Interacting with Company Stakeholders - However, firms and their competitors can participate in joint ventures, cooperative lobbying efforts, and mergers to benefit both parties...
Interview with Indiespace Founder Jeannie Novak - The phone company didn't even know what a T1 line was at the time and had to do a joint venture with a competing company in order to install one...
How To Start Exporting - You can accomplish this through agents, distributors, or joint ventures. Use the contacts you established in Step 2 to...
VAT Benefits - Many large corporations prefer to do business abroad in many instances, and engage in joint ventures and partnerships with international firms in order to reap...
Economic Derivatives - Economic derivatives were first issued through a joint venture between Goldman Sachs and Deutsche Bank in 2002. Neither...
Robert Mondavi and The Mondavi Brand - Moreover, joint ventures with other wineries such as Opus One have allowed...
Interacting with Company Stakeholders - However, firms and their competitors can participate in joint ventures, cooperative lobbying efforts, and mergers to benefit both parties...
The Automotive Industry in China (Part 2 of 2) - However, as Chinese automakers gain experience from interacting with the market and partnering with foreign auto makers in the form of joint ventures, quality has increased dramatically in recent years...
Body Language in Business: An Introduction - This can especially useful when an entrepreneur is involved in negotiating venture capital terms or a joint venture. It is a great tool to see who is...
Interview with Indiespace Founder Jeannie Novak - The phone company didn't even know what a T1 line was at the time and had to do a joint venture with a competing company in order to install one...
How Melissa Cassera Went From Ad Sales Rep to Starting a Publicity Firm - Open your eyes to new possibilities and opportunities, look for joint ventures, non-profit partnerships or investors...
Franchising in China (Part 4 of 4) - Foreign franchisors can consider entering China via joint ventures with local Chinese who have a degree of experience...
Why Do Companies Acquire Other Companies? - In short, the rationale for pursuing an acquisition boils down to the acquisition being a better option than building a company from scratch or achieving an objective through joint ventures and other alliance strategies...
Considerations in Selecting a Joint Venture Partner - In order to pick a good joint venture partner, you need to consider what the partner brings...
Taxes on Husband and Wife Businesses - Under this new legislation, husband and wife small businesses can be categorized as qualified joint ventures if they meet certain IRS criteria...