Joint Venture - JV

  

Categories: Incorporation

Nothing to do with what California and other states have now legalized in the modern era. Instead, a joint venture is a kind of partnership, usually held between two loving companies that bring disparate but needed skills to the table.

Like...many American internet media companies were great in the U.S., but a load were terrible overseas. They didn't understand local culture, regulations, and core asset allocation needs. So they JV'd with local media companies to make things work.

To wit, Yahoo Japan today still...exists, despite massive competition, because the company JV'd with Softbank who was "the" media power player in Japan at the time.

Related or Semi-related Video

Finance: What is a limited partnership?1 Views

00:00

Finance allah shmoop what is a limited partnership Well a

00:06

limited partnership is not the qualitative assessment of mole arian

00:11

curly here woop woop and yes shmoop alright Rather a

00:15

limited partner is an investment company run by a general

00:19

partner with clear lines of demarcation as it relates to

00:23

risk fiduciary duty and management responsibilities like of the day

00:27

to day investing or whatever the partnership does When you

00:30

think limited partnership think things like a venture capital company

00:35

or venture capital partnerships like one where you have a

00:38

dozen experts who come together with long track records of

00:41

identifying early stage growth companies usually deep in technology at

00:46

least here in silicon valley Together they are the general

00:49

partners of the partnership the generals they're responsible for the

00:53

day to day management of the firm and in theory

00:56

they have unlimited personal liability Should something go terribly terribly

01:00

wrong the limited partners are their investors the people who

01:05

give them money to make more money General partners raise

01:09

money for their funds by getting limited apartments to invest

01:12

in them So what is limited about this Well the

01:15

liability to the investors as long as those investing in

01:19

the limited liability partnership Don't operate the firm or manage

01:23

it or deal with day to day issues that come

01:26

up well then those limited partners are fully shielded from

01:29

any liability Should you know something go terribly terribly wrong

01:33

Although if your limited partner in a company that's designed

01:36

a nuclear power blender that spend just a little too

01:40

fast Well we're not sure how much that'll be worth 00:01:42.696 --> [endTime] in the grand scheme of things Whoa

Up Next

Finance: What is a partnership?
23 Views

What is a partnership? A partnership is an arrangement where two or more parties agree to form a business in cooperation with each other. Partnersh...

Find other enlightening terms in Shmoop Finance Genius Bar(f)