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Joint Venture

Meaning: 

A Joint Venture (JV) is a business arrangement in which two or more companies or individuals come together to collaborate on a specific project or business activity, sharing profits, losses, and control.

Why It Is Important:

JVs help companies expand their reach and capabilities without assuming full risk.
They allow for the combination of different expertise, technologies, and resources to achieve common goals.


How to understand a Joint Venture :

By sharing costs and responsibilities, companies can reduce the financial burden associated with large projects.
Joint ventures facilitate easier entry into new markets, enabling businesses to grow and diversify.


Uses of Joint Venture: 

Common uses include infrastructure projects, manufacturing partnerships, technology
sharing, real estate development, and international business expansion.