Final answer:
Joint ventures are indeed new corporate entities created by the collaboration of two companies, allowing them to synergize their resources for specific projects. They are independent from the parent companies yet subject to shared control, differing from general partnerships and corporations.
Step-by-step explanation:
It is true that joint ventures are new corporate entities created with the participation of two companies. Joint ventures involve the combination of resources, expertise, and investment from the participating companies, creating a separate entity aimed at achieving specific objectives. This new entity is distinct and operates independently of the parent companies while being subject to shared control and profits. By contrast, a general partnership involves two or more individuals who own and operate a business together, sharing responsibilities and profits. On the other hand, a corporation is a formal legal structure that can publicly trade shares to raise revenue.
Joint ventures are often utilized to enter new markets, collaborate on projects that require combined skills or production capabilities, or for shared financing of large ventures. They offer a way for companies to synergize without the permanency of a merger or acquisition. Unlike the latter, a joint venture does not indicate the end of the original companies' separate existence; instead, it represents a strategic alliance for a particular business purpose or project.