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jointventure.dunway.com
| A joint venture (often
abbreviated JV) is an entity formed between two or more parties
to undertake economic activity together. The parties agree to create a
new entity by both contributing equity, and they then share in the
revenues, expenses, and control of the enterprise. The venture can be
for one specific project only, or a continuing business relationship
such as the Sony Ericsson joint venture. This is in contrast to a strategic
alliance, which involves no equity stake by the participants, and is
a much less rigid arrangement.
Organizations can also form joint ventures, for example, a child welfare organization in the Midwest initiated a joint venture whose mission is to develop and service client tracking software for human service organizations. The five partners all sit on the joint venture corporation's board, and together have been able to provide the community with a much-needed resource. The phrase generally refers to the purpose of the entity and not to a type of entity. Therefore, a joint venture may be a corporation, limited liability company, partnership or other legal structure, depending on a number of considerations such as tax and tort liability. |
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