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Terminology: Joint Venture vs. Strategic Alliance

Logo for Quora, the source for a question about terminology - joint venture vs strategic alliance

This post is based on a Quora question about legal / business terminology that I answered recently. ? Q. What is the difference between a joint venture and a strategic alliance.

A. A joint venture involves creating a new entity in which the equity is shared by the participants.

A strategic alliance is an agreement by which the participants pursue an objective while remaining independent organizations.

The difference is whether a new legal entity is created. This makes it essential that correct terminology be used when describing a relationship between businesses.

Dana H. Shultz, Attorney at Law? +1 510 547-0545? dana [at] danashultz [dot] com
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