Difference Between Joint Venture And Partnership
The main dissimilarities or difference between joint venture and partnership can be pointed out as follows:
1. Meaning
Joint Venture: A business activity carried on by two or more people to undertake a certain task.
Partnership: A legal agreement between two or more people to own and operate a business.
2. Governed By
Joint Venture: There is no special act to govern joint venture business
Partnership: Partnership act governs partnership business
3. Business Members
Joint Venture: Known as Co-ventures
Partnership: Known as partners
4. Nature
Joint Venture: It is short-term in nature. It is terminated after the completion of defined project.
Partnership: It long lasting in nature.
5. Profit Ascertainment
Joint Venture: After the completion of project
Partnership: At the end of every accounting period
6. Account Maintenance
Joint Venture: On cash basis
Partnership: On accrual basis
Also Read:
Also Read:
7. Scope
Joint Venture: Limited scope
Partnership: Wider scope
8. Trade Name
Joint Venture: Not required
Partnership: It requires a trade name
Joint Venture Vs Partnership (Comparison Chart)
I hope this post is helpful to understand the difference between joint venture and partnership and to make comparison between them.
Joint Venture Vs Partnership (Comparison Chart)
Basis For Difference
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Joint Venture
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Partnership
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Introduction
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Business activity or project carried on by two or more parties
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Business firm which is established and operated by two or more people
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Governing Act
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No special Act
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Partnership Act
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Nature
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Short-term
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Long-term
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Members Known AS
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Co-ventures
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Partners
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Profit Calculation
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After completing the task
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At the end of the year
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Accounting
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Cash Basis
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Accrual Basis
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Scope
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Narrower
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Broader
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Trade Name Required ?
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No
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Yes
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I hope this post is helpful to understand the difference between joint venture and partnership and to make comparison between them.
