Compare joint venture and partnership.

Banking & FinanceManagementCompanies/Organisations

The major differences between joint venture and partnership are as follows −

Joint Venture

  • It is a trade formed by two or more individuals.

  • The duration of time is fixed.

  • The parties are called Co-Ventures.

  • The profit/loss are distributed on interim basis.

  • There are no specific governing laws.

  • A specific name is not required.

  • The accounts may/may not be separately maintained.

  • It follows liquidation accounting.

  • It includes profit-seeking ventures.

  • A minor is not accepted as a Co-Venturer.

Partnership

  • It is an agreement made by two or more individuals having respective proportionate shares to start a business.

  • The duration of time is not fixed.

  • The parties are called partners.

  • The profit is distributed annually.

  • It is regulated by government.

  • It requires specific name for partnership firm.

  • A separate set of books has to be maintained.

  • It follows on going concern basis accounting.

  • It includes profit seeking enterprise.

  • A minor can become a partner.

raja
Published on 25-Jul-2020 10:55:42
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