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Definition of joint venture

Joint venture or joint venture agreement is a type of commercial long-term joint venture between two or more people (usually legal persons or traders). A joint venturedoes not have to be a separate legal entity or company. In Castilian, joint venture literally means 'joint venture' or 'joint adventure'. However, in the legal sphere that meaning is not used: used,for example, terms like "strategic alliance" and "business alliance", or even the English term. The joint venturetambién is known as "risk-sharing", where two or more businesses join together to form anew one in which a product is used taking into account the best marketing tactics.
The goal of a "joint venture" may be varied, from the production of goods or provision of services, the search fornew markets or mutual support in different links of the chain of a product. Will run for a limited time, in order to monetize their development.
To achieve the common goal, two or more companiesagree to make contributions of various kinds to the common business. The contribution may consist of raw materials, capital, technology, market knowledge, sales and distribution channels, personnel,finance or products, or, what is the same: capital, resources or simply know-how ('know how' ). This alliance will not involve the loss of identity and individuality as a legal person.

Characteristicsof a joint ventureThere are no requirements on how to work together. Companies can sign a collaboration contract, constitute a joint venture (Joint Venture), recognized by Spanish law) or even acompany owned by both.
It is necessary, however, a long-term commitment, and it is also characteristic of the joint venture companies which remain independent of each other (there is no fusionniabsorción).
The difference between a joint venture and a merger is that in the case of the joint venture, the companies A and B together to create a company C, there are now three companies. But in a merger...