A joint venture is a strategic alliance where two or more parties, usually businesses, form a temporary partnership or legal entity to undertake a specific project or business activity. The purpose of a joint venture can vary, ranging from combining resources, expertise, and market access to share risks and rewards associated with the venture. Each party in a joint venture maintains its legal separation while working together towards common goals. The terms of a joint venture are detailed in a contract that outlines the roles, responsibilities, financial contributions, profit sharing, and governance structures for each of the parties involved. Joint ventures are particularly common in areas where the scale of the project is too large for a single company to handle, or where local knowledge or access is essential. They are also used as a means to enter new markets, develop new technologies or products, or combine different sets of skills and expertise. The collaboration is typically limited to a specific project or business activity, and once the goals of the joint venture are achieved, the partnership is often dissolved or restructured.