Joint venture

Joint venture is an enterprise that involves the joining together of parts of companies to accomplish specific, limited objectives. Joint ventures are controlled by the combined management of the two (or more) parent companies.

Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Joint venture. Involves the joining together of parts of companies to accomplish specific, limited objectives. Joint ventures are controlled by the combined management of the two (or more) parent companies.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Joint venture. A corporate alliance in which two or more independent companies combine their resources to achieve a specific, limited objective.

According to Management by Robbins and Coulter (14th edition),

Joint venture. A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.

According to Marketing Management by Keller and Kotler (15th edition),

Joint venture. A company in which multiple investors share ownership and control.

According to the Strategic Management by David and David (15th edition),

Joint venture. A strategy that occurs when two or more companies form a temporary partnership/consortium/business for the purpose of capitalizing on some opportunity.

According to the HRBoK Guide,

Joint venture (JV). Partnership between two or more organizations. When two or more organizations work together and share risks and rewards.

Related concepts

• Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.

Related lectures

• Introduction to Financial Management.