What is a joint venture?

A joint venture is defined as a collaboration for a specific business project. This type of arrangement typically involves two or more parties coming together to pool resources, share risks, and leverage each other's strengths to achieve a common goal. Unlike traditional partnerships or long-term business arrangements, joint ventures are often set up for a particular project or limited time frame, making option B the most accurate description.

In a joint venture, each party typically contributes assets, such as capital, expertise, or intellectual property, and they share both the profits and losses that result from the project. This allows businesses to enter new markets or navigate unfamiliar territories with reduced risk. While other forms of business relationships may have longer-term commitments or broader scopes, a joint venture's focus is narrow and targeted, aligning with the notion of collaboration for a specific goal.

Factors like negotiations and the legal structure can define how a joint venture operates, but the core concept revolves around this strategic partnership aimed at accomplishing a defined business objective.