What is a joint venture?

Question

Hi first let me apologise for what may seem to you to be an obvious question, but can anybody explain how a JV(Joint Venture) works?

Answer 1

It is when 2 homies share a doobie.

Answer 2

To add to what William said, the joint venture can also involve a formal partnership (bad idea, but that's another issue) or even a corporation. Dow and Corning formed a new corporation (Dow Corning) for their joint venture.

Important note - when entering a joint venture for business purposes it is important to document it. Under common law, this could be construed as a partnership which has the implications of 'joint and several liability'. This means that both the parties are responsible for all of the debts of this business venture.

Answer 3

A joint venture is very much like a partnership, but it can be less formal and not be a whole business. For example two people can decide to pool their money to make an investment, with no formal agreement. And that would be a joint venture. Its basically a couple of people or multiple people or businesses, who for economic gain get together to accomplish a common purpose. That purpose can be an investment, running a business, producing a product and so forth. Although there are some distinctions, it is probably closest to a partnership in form.

Here's at least one formal definition:
"A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise. "

Answer 4

One of the examples of a Joint venture is ...an example : 2 parties business agreemet party (a) puts down all the monies that the business will need and party (b) will puts all the experience and all the promotion skills that the business will need, and some how soon or later gains full control of the business...after 6 months party (a) will have all the experience and prtomotion skills that he will need for another new business, and party (b) will run awaywith all the money that got inested and profits that surfaced.....The moral message of the story is most of the time partners in a joint venture are bad news....if can't do and control a business alone...simply do not go in business....keep looking for something else.

Answer 5

A joint venture is a legal organization that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Like a partnership, joint ventures can involve any type of business transaction and the "persons" involved can be individuals, groups of individuals, companies, or corporations.
Hope this helps.

Answer 6

I'm guessing that they can, and if they are working on the same "joint venture", will share findings. If they work on other ventures, they need not share those.