joint venture

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Joint venture

An agreement between two or more firms to undertake the same business strategy and plan of action. See: Incorporated joint venture and Unicorporated joint venture.

Joint Venture

A project or other business activity in which two persons or companies partner together to conduct the project. In a joint venture, each of the persons or companies in the joint venture is responsible for profits, losses, and operations. A joint venture operates like a partnership and is usually taxed like one. A key difference between a joint venture and a partnership is the fact that a joint venture, when it involves companies, does not necessitate the merging of all the companies' operations and interests; rather, they cooperate for purposes of the joint venture only.

joint venture

A business undertaken by two or more individuals or companies in an effort to share risk and use differences in expertise. For example, oil companies often enter into joint ventures on particularly expensive projects carrying a high risk of failure. See also consortium.

joint venture

a business owned jointly by two (or more, in some cases) independent firms who continue to function separately in all other respects but pool together their resources in a particular line of activity. Firms set up joint ventures for a variety of reasons. The combining together of the resources of the two firms may facilitate the establishment of a larger-scale operation giving the joint venture access to economies of scale and increasing its penetration of the market. A joint venture is often a particularly effective way of exploiting complementary resources and skills, with one firm, for example, contributing new technology and products and the other providing marketing expertise and distribution channels. In the international context, joint ventures with local partners are often used by MULTINATIONAL ENTERPRISES as a means of entering unfamiliar foreign markets (see FOREIGN MARKET SERVICING STRATEGY).

Joint ventures are usually a less expensive way of expanding a firm's business interests than undertaking full mergers and takeovers (see EXTERNAL GROWTH); and they also allow firms to withdraw from a particular activity more easily (see DIVESTMENT). The main problem with joint ventures centres on the need to secure agreement between the two partners (especially if it is a 50 – 50 arrangement) as to how the business should be managed and developed. See BUSINESS STRATEGY, STRATEGIC ALLIANCE.

joint venture

a form of STRATEGIC ALLIANCE in which a business is owned jointly by two or more independent firms that continue to function separately in all other respects but pool their resources in a particular line of activity. Firms set up joint ventures for a variety of reasons. The combining of the resources of the two firms may facilitate the establishment of a larger-scale operation, giving the joint venture access to ECONOMIES OF SCALE and increasing its penetration of the market. A joint venture is often a particularly effective way of exploiting complementary resources and skills, with one firm, for example, contributing new technology and products and the other providing marketing expertise and distribution channels. In the international context, joint ventures with local partners are often used by MULTINATIONAL COMPANIES as a means of entering unfamiliar foreign markets.

Joint ventures are usually a less expensive way of expanding a firm's business interests than undertaking full mergers and takeovers (see EXTERNAL GROWTH). The main problem with joint ventures centres on the need to secure agreement between the two partners (especially if it is a 50–50 arrangement) as to how the business should be managed and developed.

joint venture

A legal entity somewhat similar to a partnership,except that its purpose is the pursuit of a single transaction for the mutual benefit of both joint venturers. Each joint venturer has equal rights of direction and control. For tax purposes, the joint venture is treated as a partnership and must file a partnership tax return.

Joint Venture

An enterprise participated in by associates acting together, with a community of interests, each associate having the right to participate in its management. For income tax purposes, a joint venture is treated as a partnership, not taxable in its own capacity, but regarded as a taxpayer for the purpose of computing its taxable income, which is distributable among the associates in the proportions agreed upon. Such distributive shares are reported by the associates on their individual income tax returns.
References in periodicals archive ?
Companies A and B each contribute property with an estimated fair value of $5,000 for 50% interests in a corporate joint venture.
Pickett has held positions on the Boards of Directors of several regional and international corporate joint ventures and philanthropic organizations.
Napka will focus her practice on federal and state tax controversies, as well as tax planning in business transactions, including mergers and acquisitions, corporate joint ventures, limited liability companies, partnerships and nonprofit organizations.
As corporate joint ventures grow to allow companies to share technology, reduce high capital costs, and limit risk exposures, the LLC has become the joint venture structure of choice.
The ED would continue the exception from recognition of deferred tax liabilities on unremitted earnings of foreign subsidiaries and investments in foreign corporate joint ventures considered permanently invested.
He also spent six years in the national tax offices of Arthur Andersen and Ernst & Young where he advised clients on transactions regarding corporate joint ventures, partnership mergers and divisions, international tax and check-the-box issues.
Excluding that item, net income increased 57 percent during the first nine months of fiscal 2008 compared to the same period of fiscal 2007 primarily as a result of increased income from the company's corporate joint ventures and holding companies.
automobile industry and its adverse effect on the demand for NTIC's Zerust products, the failure of NTI to realize any benefits, financial or otherwise, from its efforts to expand the application of its corrosion inhibiting technology into the oil and gas industry and its product line, the difficulties and risks associated with NTIC's international operations and its corporate joint ventures, and NTIC's reliance on its joint ventures for distributions and fees for technical services.
automobile industry and its adverse effect on the demand for NTIC's Zerust products, the failure of NTIC to realize any benefits, financial or otherwise, from its efforts to expand the application of its corrosion inhibiting technology into the oil and gas industry and its product line, the difficulties and risks associated with NTIC's international operations and its corporate joint ventures, and NTIC's reliance on its joint ventures for distributions and fees for technical services.
February 29, August 31, 2008 2007 Current assets $46,506,829 $42,767,569 Total assets 54,161,591 49,312,491 Current liabilities 17,160,559 14,939,496 Noncurrent liabilities 4,890,820 4,971,199 Joint ventures' equity 32,110,212 29,401,796 Northern Technologies International Corporation's share of Corporate Joint Ventures' equity $15,209,786 $13,602,842 February 29, February 28, 2008 2007 Net sales $49,091,121 $39,272,049 Gross profit 22,542,934 18,925,025 Net income 3,259,635 3,133,779 Northern Technologies International Corporation's share of equity in income of Corporate Joint Ventures $1,867,856 $1,629,734 Use of Non-GAAP Financial Measures
As a result, NTIC's income from its corporate joint ventures and holding companies increased 167.

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