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What Is a Joint Enterprise?

There are instances when an activity or some type of action is undertaken by more than 1 person. Such activities usually involve business for the purpose of generating income. This type of activity is called a joint enterprise.

The purpose of a joint enterprise is to provide an avenue for a partnership or a group of people to create a business together. However, this may not always mean an income-generating business. Some joint enterprises entered into may be what is called non-profit, a type of joint enterprise that may benefit someone or something else. For example, a charity organization is a non-profit organization that may be run by a group of friends in order to bring children school supplies. This is a type of joint enterprise whose sole purpose is non-profit.

Different types of organizations and entities exist as a joint enterprise. In the field of law, a law firm is a joint enterprise among the founding partners. It is possible for such joint enterprises to allow others to join the company or partnership. These people who are employed by a joint enterprise are also given some type of rights, the ability to take on debts, and the option to invest in the joint enterprise.

Those who enter into a joint enterprise are usually referred to as a founding partner. These founding members are often subject to greater liability in the event of a loss or possible bankruptcy. Cases involving a joint enterprise are usually civil in nature, but can be considered criminal in instances that involve 2 or more people committing a crime.

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