What is a joint venture?

A joint venture is a form of business involving two or more companies working together to achieve a common goal. It is often used when two companies join forces to complete a project, make a product, or conduct a service. Companies participating in a joint venture often have the same interest, but may also have different skills or resources they can bring to the project. In Maryland, joint ventures are governed by the Uniform Partnership Act of 1996, which outlines the rights and responsibilities of the businesses involved. Prior to engaging in a joint venture, it is important for companies to establish a formal agreement that clearly defines the roles and responsibilities of each partner, as well as the profits, risks, and legal liabilities associated with the venture. When all parties agree to the terms, they should sign a contract to form a legally binding agreement. In a joint venture, both partners remain independent businesses but are more closely connected and share resources and profits. It is important to consider the legal and financial implications of such an arrangement before signing an agreement. The joint venture is not recognized as a separate legal entity, so the partners remain responsible for any claims or debts that may arise from the venture.

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What is a joint venture?

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