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Joint ventures can be: incorporated ? eg a company or a limited liability partnership (LLP) unincorporated ? eg a partnership, a cooperation agreement or strategic alliance.

A joint venture is a combination of two or more parties that seek the development of a single enterprise or project for profit, sharing the risks associated with its development. The parties to the joint venture must be at least a combination of two natural persons or entities.

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Each of the participants in a JV is responsible for profits, losses, and costs associated with it.

There are four common types of joint ventures: project-based, functional-based, vertical, and horizontal.

Project Joint Venture ? this is one of the simplest, most common type of joint ventures that most companies enter. It is defined by a single specific goal set by both entities, and by the fact that the agreement ends when the project is completed and the initial goal is achieved.

A joint venture agreement should include the names and contact information of all parties involved, the purpose of the venture, the roles and responsibilities of each party, the duration of the agreement, and the terms of the agreement.

Key Takeaways Joint Ventures are of four types, namely, Project-based joint ventures, vertical joint ventures, horizontal joint ventures, and functional-based joint ventures. The type of joint venture to adopt depends upon each person's case situation and the synergy companies expect to achieve.