A Joint Venture (JV) is a cooperative enterprises entered into by two or more business entities for the purpose of a specific project or other business activity.
Often the joint venture creates a separate business entity, to which the owners contribute assets, have equity, and agree on how this entity may be managed. The new entity may be a corporation, limited liability company, or partnership.
In other cases, the individual entities retain their individuality and they operate under a joint venture agreement. In any case, the parties in the JV share in the management, profits, and losses, according to a joint venture agreement (contract).
Joint ventures are often entered into for a single purpose - a production or research activity. But they may also be formed for a continuing purpose.
Some popular example of Joint Venture business is:
1: Sony Ericsson is a joint venture to make mobile phones where Sony is a Japanese electronics company, and Ericsson is a
Swedish telecommunication company.
2: Caradigm, a joint venture between Microsoft Corporation and General Electric Healthcare.
3: Hero Honda, a joint venture between Hero Cycles India and Honda Motor Company Japan to manufacture two-wheeler vehicles.