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A joint venture is established where two or more participants join forces for a project/venture. The reason for doing so, most commonly, is that neither party wishes to devote the entire financial commitment for the project so pull their resources with another. Alternatively, the participants may have different skills or resources available and the parties may be considered more likely to succeed if their resources are pooled than if each party commences the enterprise separately.
Before embarking on the joint venture, the parties should first identify the likely requirements that each party is bringing to the table:
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- Cash
- Resources (staff, office space etc)
- Management
- Equipment
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