Joint Ventures
Shared Control Arrangements
A joint venture is a separate business arrangement in which two or more parties share control through contractual agreements. No single party has unilateral control over the venture.
- Joint control by multiple investors.
- Separate legal entity is common.
- Strategic decisions require shared approval.
- Frequently used for large projects.
Note
Joint ventures are commonly accounted for using the equity method by each venturer.
Summary
Joint ventures allow multiple organizations to share risks, resources, and rewards.