Posted in Finance, Accounting and Economics Terms, Total Reads: 819
Definition: Joint Venturing
It is a kind of business agreement where two entities comes together, ventures and becomes partner for the development of the some kind of the innovative asset or improved product either by forming a new entity or by sharing of the key resources required for the development of that asset.
These are the very effective in terms of testing out the capacities and to come out with ground breaking innovations. The JV requires the co ventures to share the resources, cost incurred and the technology for the successful implementation of joint venture.
The companies find it beneficial in terms of sharing technology and resources of expertise as it leads to the development of new resource which comes out better than the current asset.