Joint venture
A joint venture is a partnership between two organizations in which they create a new company together. The participating companies jointly own the joint venture and share both profits and any losses. Unlike a merger, the participating companies remain in existence and independent.
Joint ventures are often set up to expand existing economic activities into a new market, for example abroad. Think of a Dutch company that wants to offer its products in another country and wants to cooperate with a local partner. The joint venture is then the new company they set up together.
