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A joint venture is a combination of two or more parties that seek the development of a single enterprise or project for profit, sharing the risks associated with its development.
A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Each of the participants in a JV is responsible for profits, losses, and costs associated with it.
Four types of joint ventures Project-based joint venture. A project-based joint venture has two or more parties working on a specific project. Functional-based joint venture. Vertical joint venture. Horizontal joint venture.
A joint venture may have a 50-50 ownership split, or another split like 60-40 or 70-30. The majority corporate owner or investor usually has more control in decisions and earns a great share of the partnership earnings.
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