Joint venture

A direct investment of which two or more companies share the ownership. In most cases joint venturing involves a domestic firm entering into partnership with a foreign firm. A joint venture usually requires a big commitment from both parties—and they both must agree on a joint plan. Although a joint venture usually is formed for the achievement of a limited objective, it may continue to operate indefinitely as the objective is redefined. Joint venture are often thought of 50/50 companies, but often more than two companies participate in the ownership. Further more, one company frequently controls more than 50 percent of the venture.