Joint Venture (JV)
What is a Joint Venture (JV)?
A joint venture (JV) is a business arrangement where two or more companies come together to undertake a specific project or business activity. In a JV, the participating companies share resources, risks, and profits based on an agreed-upon structure. Joint ventures are commonly used to enter new markets, develop new products, or share expertise.
Advantages of a Joint Venture
- Shared Risk: Companies share the financial and operational risks associated with the project.
- Access to New Markets: Joint ventures can facilitate entry into new geographic or industry markets.
- Resource Sharing: Partners can leverage each other’s resources, expertise, and technology.
Related Terms and Concepts
Partnership, merger, strategic alliance, business collaboration