Joint Venture

What is Joint venture.?

Often abbreviated as JV, a joint venture is a collaboration (and not a partnership) between two or more complementary companies – may be from the same country or from different. In general, both the collaborators enjoys equity stakes in the company. The equity of both, however, are determined based on the extent of collaboration by the second company.
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Most joint ventures are typically confined to single projects. Despite the fact that joint ventures are one of the easiest ways for companies to raise funds, exchange technologies and share critical resources. they still have a plethora of inherent challenges.

A joint venture is usually a separate, standalone entity and has nothing to do with other business divisions of the collaborators.

Edited and Updated 15th February 2014

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