A Joint Venture (JV) is a type of business partnership where two or more entities agree to collaborate by pooling their resources, expertise, or capabilities to undertake a specific project or achieve a common goal. This arrangement is usually created for a specific purpose, such as developing a product, entering a new market, or sharing infrastructure costs. Each party involved in the joint venture retains its independence while sharing the profits, losses, and control of the JV according to the terms of their agreement. For example, two companies might form a joint venture to co-develop a new type of software product and market it jointly, each contributing their strengths and resources.

Joint ventures can be structured as a new corporation, partnership, or contractual arrangement, depending on the nature of the collaboration and jurisdictional requirements. They are often used in international business, such as when companies from different countries want to enter each other's markets. Risks and rewards are shared, making joint ventures effective for spreading operational risks. However, they can also present challenges, such as potential disputes over management or profit-sharing.

For instance, Company A and Company B might form a joint venture to explore renewable energy solutions, leveraging Company A's technical expertise and Company B's financing capability. Such partnerships enable the entities involved to achieve objectives they might not be able to accomplish individually.