Describe a joint venture as a business model

What will be an ideal response?


A joint venture is an association of persons or companies that are involved in a collaboration for more than a transitory period. It can assume any type of business form, including that of an association, a partnership, a limited partnership, a secret partnership, or an LLC. Multinational enterprises use joint ventures as a way to share risk and to facilitate entry into foreign markets. Although the joint venturers may be from the same home state or two different home states, more commonly at least one is from the host state. Indeed, many developing states insist on local participation, and a joint venture may be the only practical form for carrying on business in such a place. The venture can be for one specific project only, or a continuing business relationship. A joint venture may be a corporation, LLC, partnership or other legal structure, depending on a number of considerations such as tax and tort liability.

Business

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Fill in the blank(s) with the appropriate word(s).

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