1. the act of acquiring or gaining possession
2. something acquired
3. a person or thing of special merit added to a group
4. (Astronautics) astronautics the process of locating a spacecraft, satellite, etc, esp by radar, in order to gathertracking and telemetric information
An acquisition is a corporate action in which a company buys most, if not all, of another firm's ownership stakes to assume control of it. An acquisition occurs when a buying company obtains more than 50% ownership in a target company.
A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.
Often the joint venture creates a separate business entity, to which the owners contribute assets, have equity, and agree on how this entity may be managed. The new entity may be a corporation, limited liability company, or partnership.
In other cases, the individual entities retain their individuality and they operate under a joint venture agreement. In any case, the parties in the JV share in the management, profits, and losses, according to a joint venture agreement (contract).
Joint ventures are often entered into for a single purpose - a production or research activity. But they may also be formed for a continuing purpose.
Do you have a business idea and you want to work with another company to promote and sell it? You may want to consider a joint venture. This article focuses on the tax and legal issues involved with joint ventures.
By Jean Murray Updated May 04, 2017
As important as it is to secure the right terms for a shared enterprise, it is just as critical to form a sustainable relationship.
By Eileen Kelly Rinaudo and Jason Roswig
McKinsey & Company
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