Corporate joint venture

A corporate joint venture is an agreement between two or more entities to work together to achieve a specific goal. Once the goal has been reached, the agreement is terminated. For example, two corporations could combine their efforts to engage in a specific research project, where the two parties agree to equally share the knowledge obtained from the arrangement. Joint ventures are more common when a large amount of cash is needed to achieve a goal, when no single business has the requisite knowledge base, or when the risk of loss is too high to be borne by a single corporation.

A corporate joint venture is not the same as a corporate partnership, where the intent is to work together over a longer period of time to jointly earn a profit.

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Choice of Entity