a partnership created to accomplish a very narrow purpose (Miller et. al., 2000).
Essentially, joint ventures are established as a general partnership in which the ownership interest is split between two or more partners who are usually themselves also corporate entities (Miller et. al., 2000). The relationship between the partners to a joint venture is governed by the terms of the agreement between them, which may often be oral and not codified or outlined in any formal written contract, as well as the general law as applied to contracts and partnerships (Tate, 1998, p. 62). The key, however, is that all partners in the JV are exposed to the same risks, although the way in which this responsibility is divided among the partners through their agreement is quite variable (Miller et. al., 2000).
Generally, partnerships are formed to make a profit while engaging in a particular type of business such as a law firm or an association of medical doctors operating out of a single clinic. A joint venture, o
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