Joint Venture
A joint venture (JV) is a type of business entity created by two or more parties that normally has shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly an emerging market; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities.
Most joint ventures are incorporated, although some, as in the oil and gas industry, are "unincorporated" joint ventures that mimic a corporate entity. With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such a partnership can also be called a joint venture where the parties are co-venturers.
A joint venture can take the form of a business. It can also take the form of a project or asset JV created for the purpose of pursuing one specific project, as an "industry utility" that provides a narrow set of services to industry participants, or may be created for the purpose of defining industry standards.
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