BizSugar.com › Management › Joint Venture: Definition, Types, Advantages & Disadvantages

The dictionary meaning of the word ‘venture’ is a hazard or a risk. However, joint venture in business deals with risk as well as benefits. The joint venture is a commercial enterprise in which two or more companies join their forces to gain a tactical and strategic edge in the market. Companies consider joint venture in order to pursue a certain or specific task. The task may be a new project or an entire new firm. There is no limitation to the involvement of more than two companies at a time. Companies initiate it with the help of a contractual agreement among the parties. The profit and loss in this technique is shared with the participants.