What defines a 'joint venture'?

A joint venture is defined as a business enterprise that is created by two or more parties who come together to collaborate, sharing not only the resources needed for the business but also the risks and rewards that come from it. This type of arrangement allows companies to leverage each other's strengths, access new markets, or share technology and expertise while spreading the potential risks involved in a new project or service.

In a joint venture, each party contributes assets and has a stake in the venture's outcomes, which can lead to more innovative solutions and competitive advantages in the marketplace. This collaborative effort contrasts significantly with a standalone business that operates independently without partnerships, as well as corporations that focus solely on acquisitions or government-funded projects that do not involve private sector collaboration.