Three firms invest capital into a third entity with each firm holding an equal share of the net assets. An agreement between the two firms stipulates that certain decision areas that require consent by all parties; however, some areas will only require two of the firms to agree. This is a joint venture.

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This scenario describes a joint venture, where multiple parties (in this case, three firms) come together to undertake a business enterprise, sharing in the profits, losses, and control. The agreement on decision-making processes, including areas requiring unanimous consent and those needing only a majority, is characteristic of joint venture agreements.

Three Firms Invest Capital into a Third Entity with Each