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The video discusses the distinctions between joint ventures and collaborations. A joint venture involves two companies coming together to undertake a large project that one company cannot handle alone, typically for major construction endeavors. In this case, they establish a joint venture company, often split 50/50 or 51/49 between the partners. In contrast, collaborations, also known as contractual joint ventures, do not require establishing a new company. Instead, they are based on contracts that outline the terms of collaboration between the parties. This approach is common for various business relationships.
