Joint Venture

A Joint venture is a legal term where two or more parties enter into an agreement to work towards a certain goal whilst remain separate entities. The entities come together to combine their forces, knowledge, capital to produce a greater outcome of which they would not be able to accomplish along. Joint venture is commonly entered when two or more parties come together to take on a single business or project. Since the cost of starting new projects is high, a joint venture allows involved parties to share the expenses and in turn, the outcomes produced.