What is the difference between a joint venture and a business?

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pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

The difference between a joint venture and a business is that a business is one company, one firm, and a joint venture is a project in which two or more companies join together.  So a joint venture involves more than one firm or business.

A joint venture occurs when one or more different firms get together and work together on one particular project.  The firms do not merge, they just cooperate.  They remain as separate entities, but they work together on this one project.  After the project is over, they do not necessarily work together again.  Joint ventures are typically undertaken so as to share risks or so as to allow a company from one country to gain entry into another country's market.

So the difference between the two is that a business is one company while a joint venture is when more two or more companies cooperate on a project.

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angelnorris12's profile pic

angelnorris12 | Student, Undergraduate | (Level 1) eNoter

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venture is one type of deal between two people or two companies. If you want to get more details between this two topics the I suggest you one link which helps you to find best answer.


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andrew4president's profile pic

andrew4president | Student, Grade 11 | (Level 1) Honors

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A joint venture is a type of partnership. Here the partners come together mostly for a short period of time to satisfy the wants of the market. e.g during world cup two people may form a partnership in the form of a joint venture to sell fans t-shirts with their favorite team's name written on it. Their business would go on through out the games then at the end they would split the profits and disolve the parnership. Because their activies give profits then a joint venture is also a business. i.e. business - partners - joint venture. I hope this was helpfull to you.