On the other hand, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are "co-ventures". In other words, we can say that- the cooperation of two or more individuals or businesses in which each agrees to share profit or loss and control in a specific enterprise.
Why to starts joint venture:
Advantages of JV:
- Reduction in competition
- Best outcome
- Reduction risk
- More competition with large firms
- Upgrade technology
- Decrease in production cost
- Spread the risk
- Less investment
Disadvantages:
- Participation problem
- Legal restriction
- Difference in culture
- No need of intention with other one
- Lack of co-ordination
- Dominant to other person
- Difficult to choice the best partner
