The joint venture is an agreement between two different companies to work together to achieve specific objectives. Unlike a merger or acquisition, strategic alliance is not permanent, and it offers companies the benefit of maintaining the independence and identity as individual companies while their compensation covering one or several weaknesses with the strengths of another company. A strategic alliance can also be called a "strategic partnership.". In a joint venture (JV), each participant must take responsibility for profits, losses and expenses associated with it. However, the joint venture is its own entity, separate and apart from other business interests of the participants.
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