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 ?
Joint ventures have been regularly used as vehicles for international operations for many years, as businesses entering a new territory have sought to team up with well-connected local players.
501 (c)(3)'s community benefit requirements and could only do so by being involved in a joint venture with a for-profit entity, because profits are needed to fired its charitable mission.
AlliedSignal announced that the consolidated Asian fibers company formed last October as a joint venture between AlliedSignal and three Korea-based companies, Sam Yang Corp.
The joint venture approach to managing receivables can turn a nagging headache into a profit opportunity and a tool to add value for investors and customers alike.
The two entities form a joint venture in the form of an LLC.
It should be noted that joint ventures with foreign companies contain potential traps.
Additionally, the agreement that governs the operations of the Transeastern JV requires the joint venture to make preferred payments to Technical Olympic's joint venture partner.
Hersha's joint venture with CNL has been reported on its financial statements as an unconsolidated joint venture interest.
This Joint Venture will allow us to bid on the private label gourmet whole bean business we have not been equipped to pursue from an operational standpoint in the past.
The joint venture company, called Sino-Brillian Display Technology Corporation, is to assemble and sell LCoS(TM) based light engines to TV manufacturers initially in China and eventually to the rest of the world.
Nasdaq: BRLC), a manufacturer and marketer of LCD and LCoS(TM) HDTVs and digital entertainment products, today announced that it has entered into an agreement in principle to form a joint venture in China for the manufacture of LCoS(TM)-based light engines.
NASSAU, Bahamas -- Teekay Shipping Corporation (Teekay) (NYSE:TK) announced today an agreement with PGS Production AS, a wholly owned subsidiary of Petroleum Geo-Services ASA (PGS), to form a joint venture company called Teekay Petrojarl Offshore that will focus on pursuing opportunities in the rapidly growing global market for Mobile Production Solutions with emphasis on developing solutions through Floating Production Storage and Offloading (FPSO) units.

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