joint venture


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Related to joint venture: Strategic alliance

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 ?
These forward-looking statements include, but are not limited to, statements about expected benefits of the transactions contemplated by the joint venture separation.
The synergies and efficiency gains explored by the expert witnesses are specific to the joint venture and are not simply transferred gains.
What are the precise joint venture rights granted or optioned?
Clariant, Easton, MD, a global specialty chemicals company, has signed an agreement to form a joint venture with Sang Ho Mercantile Co.
The joint venture often benefits the manufacturer by providing a more disciplined approach to credit decisions.
Therefore, depending on the outcome in Redlands, the unwinding of the Columbia/Arlington joint venture may be the tip of the iceberg.
The Company's cellular joint venture license for Hubei Province provides the opportunity for the joint venture to offer cellular telephone service in a minimum of six cities in Hubei.
In the ruling, the corporation and partner formed a joint venture and, under a prearranged plan, the corporation contributed its stock and cash to the joint venture and the partner contributed a portion of its operating business.
On July 25, 1990, CCI and PacTel Corporation ("PacTel") entered into a merger and joint venture agreement, as amended as of Dec.
98-15, the Service presents two situations in which a hospital forms a joint venture with a taxable organization and analyzes whether the ownership structure, along with a management agreement with the joint venture, allow the hospital to continue to qualify for exemption under Sec.

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