What is a joint venture?

A joint venture is characterized as a collaboration between two or more different companies that come together to work on a specific project or business objective while maintaining their own distinct identities. This arrangement allows companies to pool their resources, expertise, and capital to achieve mutual goals without losing their individual branding and operational independence.

In this partnership model, each participant typically shares in the profits, risks, and management responsibilities of the joint venture according to their contribution and agreement. This collaboration can be particularly advantageous in entering new markets or developing new products, as it leverages the strengths and capabilities of each involved company.

The other choices describe different business arrangements that do not encapsulate the essence of a joint venture. For instance, a partnership model where one party has all control suggests a more hierarchical relationship, which is contrary to the collaborative nature of a joint venture. A contract for exclusive access to a particular market implies a restrictive agreement rather than a shared effort. Likewise, a merger describes the complete integration of two entities into one single organization, which fundamentally differs from the collaborative and less permanent nature of a joint venture.