Overview
Joint ventures are strategic alliances where two or more companies collaborate on a specific project while maintaining their individual identities. This arrangement allows companies to share resources, expertise, and risks, making it easier to enter new markets or develop new products. Financial rep...
Key Terms
Example: Company A and Company B formed a joint venture to develop a new product.
Example: If a joint venture earns $100,000, and you own 50%, you report $50,000.
Example: If you own 40% of a joint venture, you include 40% of its financials in your statements.
Example: Balance sheets and income statements are key financial statements.
Example: Investors, employees, and customers are all stakeholders.
Example: Company A acquired Company B to expand its market reach.