Differences Between Partnership And Joint Ventures - SS3 Accounting Lesson Note
Partnership and joint venture are two different forms of business collaboration. The main differences between partnership and joint venture are as follows:
-
Purpose: Partnership is formed to run a long-term business together, whereas a joint venture is formed to achieve a specific project or goal.
Structure: In a partnership, the parties involved jointly own and operate a business. In a joint venture, the parties involved retain their individual businesses and come together to form a separate entity to achieve a specific goal.
Duration: Partnership is usually intended to be a long-term arrangement, whereas joint ventures are often short-term, project-based collaborations.
Management: In a partnership, all parties involved have a say in the management and decision-making of the business. In a joint venture, each party contributes their own expertise and resources to the project, but management and decision-making are often shared or delegated to one party.
Legal status: A partnership is a formal business entity, with legal recognition and the ability to own property, enter into contracts, and sue or be sued. A joint venture, on the other hand, is typically an informal arrangement with no legal status on its own.