JOINT VENTURE

JV is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.This taks can be a newproject or any other business activity.

In a Joint venture (JV),Each of the participant is responsible for profit ,losses  and costs associated with it.However the venture is its own entity ,separate and apart from the participants other business interest.

The other definition is a Business arrangement to carry out a specific business project or purpose for profit .The joint venture is often terminated when the specific or project has come to an and.if a separate legal entity is not created for the joint venture,the joint venture wll be treated as a partnership for federal tax purpose and generally, state law purposes.

Example company of Joint venture:

-Sony Ericsson Company

Sony-Ericssonis a joint venture by the Japanese consumer electronisc company Sony Corporationsand the Swedish tele communications company Ericsson to makemobile phones.

The stated reason for this venture is to combine Sony’s consumer electronics expertise withEricsson’s technological leadership in the communications sector.Both companies have stopped making their own mobile phones.