Definition of Joint Venture

When two or more business parties enter into an agreement and collectively put their efforts/resources to get their desired product or task to be done.

A joint venture can be made among separate business units/entities, and the organization as a whole. These business units collaborate their resources and produce or serve their intended products and services.


Usually, joint ventures are made to take benefit from another organization’s specialty by which it has earned a repute in a particular domain. Moreover, a joint venture can be made between two organizations to complement each other’s business. (Barnes & Noble with Starbucks) 


Example of Joint Venture:

Sony made a joint venture with Ericson in their Cell Phone production.

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