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A joint venture is a business entity which is established when two or more than two parties plan to perform an economic activity together. The two existing parties agree to create a new entity, in which both the parties contribute equity and control the enterprise together. Joint venture can be for a single project or for permanent operations of the parties. It is different from the strategic alliance because strategic alliance does not hold equity and that is less rigid. In a joint venture the companies share their resources and it is considered as the strategic decision of the company.
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