Joint Venture - JV
 |
Definition of 'Joint Venture - JV'A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate and apart from the participants' other business interests. |
 |
Investopedia explains 'Joint Venture - JV'Although JVs represent a great way to pool capital and expertise and reduce the exposure of risk to all involved, they do present some unique challenges as well. For instance, if party A comes up with an idea that allows the JV to flourish, what cut of the profits does party A get? Does the party simply receive a cut based on the original investment pool or is there recognition of the party's contribution above and beyond the initial stake? For this and other reasons, it is estimated that nearly half of all JVs last less than four years and end in animosity. |
Related Definitions
Articles Of Interest
-
In Small Business, Success Is Spelled With 5 "C"s
Incorporating these steps will help your business thrive in a competitive market. -
Reality Check: Why Startups Fail
New ventures have only a 50% chance of making it through the first five years. Find out why. -
Small Business: It's All About Relationships
Rather than be a jack-of-all-trades, an owner should rely on a network of trusted experts. -
The Basics Of Mergers And Acquisitions
Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work. -
The Nash Equilibrium
Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium ... -
Dealing With 10 Coworker Personality Conflicts
The financial world is filled with dysfunctional workers; find out if you're one of them and what you can do about it. -
6 Ways Mentors Elevate Your Career
Find out how experienced and credible mentors can get you where you want to go. -
The Basics Of A Financial Analysis Report
Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ... -
How Education And Training Affect The Economy
Education and training benefit not only the worker, but also the employer and the country as a whole. -
Viewing The Market As Organized Chaos
Find out how a cat and a ladybug prove markets are both random and efficient.
Free Annual Reports