A joint venture (often abbreviated JV) is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. In accounting terms after all liabilities are paid ownership equity is the remaining interest in Assets If valuations placed on assets do not exceed liabilities In business revenue or revenues is Income that a company receives from its normal business activities usually from the sale of goods and services In common usage an expense or expenditure is an outflow of Money to another person or group to pay for an item or service or for a category of costs The venture can be for one specific project only, or a continuing business relationship such as the Sony Ericsson joint venture. Sony Ericsson is a Joint venture established in 2001 by the Japanese Consumer electronics Company Sony Corporation and the This is in contrast to a strategic alliance, which involves no equity stake by the participants, and is a much less rigid arrangement. A Strategic Alliance is a formal relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations

The phrase generally refers to the purpose of the entity and not to a type of entity. Therefore, a joint venture may be a corporation, limited liability company, partnership or other legal structure, depending on a number of considerations such as tax and tort liability. A corporation is a separate legal entity usually used to conduct business A limited liability company (abbreviated LLC or LLC) in the law of the vast majority of the United States is a legal form of business Company For partnership in cricket terminology see List of cricket terms A partnership is a type of Business entity in which partners Tort law is the name given to a body of law that creates and provides remedies for civil wrongs that do not arise out of Contractual duties

When are joint ventures used?

Joint ventures are common in the oil and gas industry, and are often cooperations between a local and foreign company (about 3/4 are international). A joint venture is often seen as a very viable business alternative in this sector, as the companies can complement their skill sets while it offers the foreign company a geographic presence. Studies show a failure rate of 30-61%, and that 60% failed to start or faded away within 5 years. (Osborn, 2003) It is also known that joint ventures in low-developed countries show a greater instability, and that JVs involving government partners have higher incidence of failure (private firms seem to be better equipped to supply key skills, marketing networks etc. ) Furthermore, JVs have shown to fail miserably under highly volatile demand and rapid changes in product technology.

Some countries, such as the People's Republic of China and to some extent India, require foreign companies to form joint ventures with domestic firms in order to enter a market. Talk People's Republic of China) PEOPLE'S REPUBLIC OF CHINA ARTICLE GUIDELINES India, officially the Republic of India (भारत गणराज्य inc-Latn Bhārat Gaṇarājya; see also other Indian languages) is a country This requirement often forces technology transfers and managerial control to the domestic partner.

Another form joint ventures may take are the Joint Ventures (JV's) in the U. S. , Canada, and Mexico dedicated to the conservation of priority bird species and their associated habitats. Each of these JV's is different in how they go about their respective missions, but all try to follow the principles of Strategic Habitat Conservation(SHC). SHC combines biological planning, conservation design, conservation delivery, and evaluation and monitoring. Gulf Coast Joint Venture, Lower Mississippi Valley Joint Venture, and Prairie Pothole Joint Venture are just three of the 20+ JV's found in North America.

As well, Joint Ventures are practiced by a Joint venture broker who are people that often put together the two parties that participate in a Joint Venture. Joint venture brokers are people who connect business Joint venture partners together for profit making projects A Joint venture broker then often make a percentage of the profit that is made from the deal between the two parties. Joint venture brokers are people who connect business Joint venture partners together for profit making projects

Reasons for forming a joint venture

Internal reasons

1. Build on company's strengths
2. Spreading costs and risks
3. Improving access to financial resources
4. Economies of scale and advantages of size
5. Access to new technologies and customers
6. Access to innovative managerial practices

Competitive goals

1. Influencing structural evolution of the industry
2. Pre-empting competition
3. Defensive response to blurring industry boundaries
4. Creation of stronger competitive units
5. Speed to market
6. Improved agility

Strategic goals

1. Synergies
2. Transfer of technology/skills
3. Diversification

Examples

• INTO University Partnerships specialises in creating JVs with British universities
• AutoAlliance International between Ford Motor Company and Mazda
• Brewers Retail Inc. between Inbev, Molson Coors and Sapporo Breweries
• Bank DnB NORD between DnB NOR and NORD/LB. INTO University Partnerships is a British Limited company that specialises in setting up Joint ventures with universities AutoAlliance International ( AAI) is a Joint venture automobile assembly firm co-owned by Ford Motor Company and Mazda Motor Corporation, in which Ford Motor Company is an American Multinational corporation and the world's fourth largest automaker based on Worldwide vehicle sales, following ( is a Japanese automotive manufacturer based in Hiroshima, Japan. Brewers Retail Inc founded in 1927 is a privately owned chain of retail outlets in Ontario, Canada, that operates as The Beer Store. For the proposed merged company see Proposed merger of Anheuser-Busch and InBev. Molson Coors Brewing Company () is a company that was created by the merger of two of North America's largest breweries: Molson of Canada, and Coors is a Japanese Beer brewer. Their world headquarters is located in Ebisu, Shibuya Tokyo. DnB NORD is a European Bank group in Denmark, Estonia, Finland, Latvia, Lithuania and Poland DnB NOR ASA ( is Norway 's largest Financial services group with total assets of more than NOK 1 The NORD/LB (abbreviation for Norddeutsche Landesbank - Girozentrale) is a Bank in Germany.
• Equilon between Texaco and Royal Dutch Shell
• Strategic Alliance between Northwest Airlines and KLM Royal Dutch Airlines
• LG. Texaco is the name of an American oil retail brand Its flagship product is its fuel "Texaco with Techron" Royal Dutch Shell plc, commonly known simply as Shell, is a multinational oil company of Dutch and British origins Northwest Airlines Inc (often abbreviated NWA) is the principal subsidiary KLM Royal Dutch Airlines ( Dutch: Koninklijke Luchtvaart Maatschappij, literally Royal Aviation Company; usual English translation Philips Components between LG Group and Royal Philips Electronics
• NUMMI between General Motors and Toyota
• Penske Truck Leasing between GE and the Penske Corporation
• Sony Ericsson between Sony and Ericsson
• TNK-BP between BP and TNK (Tyumen Oil Co. Koninklijke Philips Electronics NV ( Royal Philips Electronics Inc. New United Motor Manufacturing Inc is an Automobile Manufacturing plant in Fremont California. General Motors Corporation ( GM) ( is a multinational automobile manufacturer founded in 1908 and headquartered in the United States. (pronounced) is a Multinational corporation headquartered in Japan, and is currently the world's largest Automaker. Penske Truck Leasing Co LP headquartered in Reading PA, is a joint venture among Penske Corporation, Penske Automotive Group and General Electric Sony Ericsson is a Joint venture established in 2001 by the Japanese Consumer electronics Company Sony Corporation and the is a multinational conglomerate corporation headquartered in Minato Tokyo, Japan, and one of the world's largest Media conglomerates with Ericsson ( Telefonaktiebolaget L M Ericsson) () one of the largest Swedish companies is a leading provider of telecommunication and data communication systems TNK-BP Ltd ( is a major Vertically integrated Russian oil company registered in the British Virgin Islands in September 2003 as a result of the merger BP plc, previously known as British Petroleum, is the third largest global Energy company, a multinational oil company (" Oil major )
• Verizon Wireless between Verizon Communications and Vodafone
• CW Television Network between CBS Corporation and Time Warner
• The Baseball Network between ABC, NBC, and Major League Baseball
• The Prime Time Entertainment Network from the Prime Time Consortium, a joint venture between Warner Bros. Domestic Television and the Chris-Craft group of independent stations. Cellco Partnership, Doing business as Verizon Wireless, owns and operates the second largest Wireless Telecommunications network in the "Verizon" redirects here this article is about the corporation see also Verizon Wireless, Verizon Online DSL and Verizon FiOS. Vodafone is a Mobile network operator headquartered in Berkshire, England, UK. The CW Television Network ( The CW) is a Television network in the United States launched at the beginning of the 2006-2007 television season. CBS Corporation () is an American Media conglomerate focused on Broadcasting, Publishing, Billboards, and Television Time Warner Inc ( is the world's largest media and entertainment conglomerate, headquartered in New York City. The Baseball Network was a short-lived television Joint venture involving the American Broadcasting Company ( ABC) the National Broadcasting Company The American Broadcasting Company ( ABC) is an American Television network. The National Broadcasting Company ( NBC) is an American Television network headquartered in the GE Building in New York City's The Prime Time Entertainment Network (also known as PTEN) was a United States Television network launched in 1993 by the Prime Time Consortium Warner Bros Television is the television production and distribution arm of Warner Bros Chris-Craft Industries is a privately held American manufacturer of civilian Powerboats based in Sarasota Florida.
• The XFL between NBC and World Wrestling Entertainment
• The Nokia Siemens Networks between Nokia and Siemens AG
• The Balfour Beatty Skanska JV between construction contractors Balfour Beatty and Skanska
• Shell-Mex and BP between Royal Dutch Shell and British Petroleum (1931-1975)
• United Launch Alliance (ULA) between Boeing and Lockheed Martin. The XFL was a professional American football league that played for one season in 2001 The National Broadcasting Company ( NBC) is an American Television network headquartered in the GE Building in New York City's World Wrestling Entertainment Inc ( WWE) is a publicly traded privately controlled integrated media (focusing in Television, Internet, Nokia Siemens Networks is a telecommunications solutions supplier which was created as the result of a joint venture between Siemens AG 's COM division (minus its Enterprise Nokia Corporation (pronunciation /'nɔkiɑ/),,) is a Finnish multinational Communications Corporation, headquartered Balfour Beatty plc ( is a London -based Construction, Civil engineering and rail services company Skanska, is a multinational Construction and development company based in Sweden, where it is also the largest construction company Shell-Mex and BP Ltd was a British joint marketing venture between Shell and British Petroleum. Royal Dutch Shell plc, commonly known simply as Shell, is a multinational oil company of Dutch and British origins BP plc, previously known as British Petroleum, is the third largest global Energy company, a multinational oil company (" Oil major The Boeing Company is a major Aerospace and defense corporation originally founded by William E Lockheed Martin ( is a large multinational Aerospace manufacturer and advanced technology Company formed in 1995 by the merger of
• Sony BMG Music Entertainment between Sony Music Entertainment (part of Sony) and Bertelsmann Music Group (part of Bertelsmann)

External links

• Cornell Law School's Joint Venture Info Page Contains legal information and relevant definitions regarding joint venture partnerships. Sony BMG Music Entertainment is a diverse music and entertainment group Sony Music Entertainment is a major global Record label controlled by the Sony Corporation of America, being one of the "big four" record companies is a multinational conglomerate corporation headquartered in Minato Tokyo, Japan, and one of the world's largest Media conglomerates with Bertelsmann AG is a transnational media corporation founded in 1835 based in Gütersloh, Germany.
• JV Notify Pro Joint Venture CommunityJoint Venture Marketing Discussion Forum
• Joint Venture Advice Articles from JVBlogger regarding Joint Ventures for Businesses.
• Gulf Coast Joint Venture
• Joint Venture Marketing on the Internet Definition & discussion of online joint ventures.
• Lower Mississippi River Joint Venture
• Prairie Pothole Joint Venture