What is a joint venture?

A joint venture is an agreement by two or more people or companies to accomplish a specific business goal together. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website.

What are the advantages of a joint venture?

When organizations come together to form a joint venture, then it gives them a way to spread out the risk factors that are involved in their planned activities. This advantage also makes it possible for the overall cost of the work to be less individually since there are multiple parties actively engaged in the agreement.

Is a joint venture a permanent solution?

1. Joint ventures are not permanent arrangements to manage. Joint ventures are not typically a permanent solution. It is a temporary arrangement that allows two or more companies or individuals to help each other in specific situations. That means you are not taking long-term risks when creating this arrangement.