A Joint Venture (abbreviated as JV) is a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control. Joint control is the contractually agreed sharing of control over an economic activity. Control is the power to govern the financial and operating policies of an economic activity so as to obtain benefits from it. It is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge and, of course, profits. In a JV, each of the participants is responsible for profits, losses and costs associated with it. A joint venture differs from a merger in the sense that there is no transfer of ownership in the deal. However, the venture is its own entity, separate and apart from the participants' other business interests.
