Two or more companies form a joint venture if they want to join forces for a common purpose in which they participate in risk and reward. It allows any business to grow without having to seek external financing. In European law, the term “joint venture” is an elusive legal concept, better defined according to the rules of corporate law. In France, the term “joint venture” is repeatedly translated: “business association,” “joint venture,” “joint venture” or “joint venture.”  A joint venture usually consists of two or more individuals or companies that come together to carry out a limited project in terms of scope and time. Once the project is completed, or on a fixed date in the future, the joint venture will end. Unlike a joint venture, a partnership is intended for a long-term business objective. If the purpose of the two-party membership is to create and operate a business for the foreseeable future, it is likely that they will form a partnership and not a joint venture. The main difference between partnerships and a joint venture is the length of the relationship. Joint ventures take over projects, partnerships are companies. The company can be a group of companies (for example. B Dow Corning), a project/JV designed to pursue a specific project or joint venture that aims to set standards or serve as an “industrial utility” providing a limited number of services to industry players. A joint venture is an entity consisting of two or more parties and generally characterized by common ownership, common returns and risks, and common governance.
Companies generally pursue joint ventures for one of four reasons: access to a new market, particularly in emerging countries; Achieving a level of efficiency at scale by combining assets and operations; Sharing risk for large-scale investments or projects or have access to skills and skills.  Reuer and Leiblein`s work contradicted the assertion that joint ventures minimize the risk of decline.  However, by law, a social contract cannot exempt partners from certain fundamental responsibilities such as liability (unless they constitute a partnership of responsibility). It is important to exercise caution in the text of a partnership agreement, as it can affect how the partners involved can make decisions and changes about the company. In the absence of a carefully crafted partnership agreement, you may find yourself in a situation where your partner makes drastic changes without consulting you. A partnership consists of two or more people who come into business with the goal of making a common profit. A partnership is governed by a partnership agreement and, unlike a joint venture, it usually lasts as long as the partners want to be in business.