Differences Between Partnership And Joint Ventures - SS3 Accounting Past Questions and Answers - page 1
What is the main difference between a partnership and a joint venture?
The partnership is a long-term business collaboration, while the joint venture is a short-term project-based collaboration.
The partnership involves separate entities, while a joint venture involves a jointly-owned business.
The partnership is informal, while a joint venture is a formal business entity.
What is the purpose of a joint venture?
To run a long-term business together
To achieve a specific project or goal
To share resources with another business
How is management typically handled in a joint venture?
Each party has an equal say in management and decision-making
Management is delegated to one party
There is no management involved in a joint venture
Does a joint venture have legal status on its own?
Yes
No
It depends on the type of joint venture
What is the typical duration of a joint venture?
Long-term
Short-term
Indefinite
How is ownership structured in a partnership compared to a joint venture?
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.
What are some examples of situations where a joint venture might be used?
Examples of situations where a joint venture might be used include developing a new product or service, entering a new market, or collaborating on a large project.