BelemMar: Created page with "A partnership and a joint venture might be similar but they are not the same. A business can come in different form..."

2020-08-30T00:20:44Z

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[[File:Cytonn-photography-n95VMLxqM2I-unsplash.jpg|thumb|A partnership and a joint venture might be similar but they are not the same. ]]
A business can come in different forms, like a sole proprietorship, corporation, joint venture or a partnership. Among these types, joint venture and partnership are commonly mistaken for each other. Here are the variations between a joint venture and partnership.

A joint venture is a contractual agreement between two companies or parties to join together in order to accomplish a particular project or business undertaking. Both parties continue to maintain their own businesses and exist as separate entities. Companies may take part in a joint venture for reasons like research and development, property development, or travel agreements.

A partnership is a form of business wherein partners contribute money, property, and/or industry to pursue a common objective for the sake of profit. Unlike a joint venture, a partnership exists as a single entity. The partners agree on how they contribute to the business as well as stipulate division of profits and losses. A partner can be rendered liable to pay for debts that the other partners cannot pay if it concerns the business.
{| class="wikitable"
|-
! !! Joint venture !! Partnership
|-
| Definition || Two different entities join together in a contractual agreement to pursue a mutual objective || Partners contribute money, property, and/or industry to accomplish a specific objective for the purpose of profit
|-
| Key Points || A common interest or purpose, joint control, right to a share in profits, a duty to share in the losses, does not necessarily pursue profit || A common interest or purpose, joint control, right to a share in profits, a duty to share in the losses, pursuit of profit, a maximum number of 20 partners
|-
| As an entity || The involved entities are separate from each other || The partnership itself is the single entity
|-
| Advantages || Opportunity for business expansion, ability to grow without the need to increase liabilities, development, greater access to resources and labor || Ease of establishment, lower costs, flexibility in business structure, less external regulation, privacy of each partner’s affairs
|-
| Disadvantages || Risk of breach of trust, lack of collaboration can pull the other entity down, risk of conflicts || Liability and accountability regarding other partners’ debts and actions, division of profit, unlimited liability which can possibly affect personal assets
|-
| Division of profit and loss || Division at the end of the project || Division based on stipulation, usually based on capital contribution
|-
| Scope of liability || Each party is liable for their own incurred debts || Unlimited liability (except in the case of limited partners); accountability for the debts incurred by other partners
|}
=== Venn Diagram ===
[[File:Difference-Between-Joint-Venture-and-Partnership.png|center]]

Difference between Joint Venture and Partnership - Revision history

BelemMar: Created page with "A partnership and a joint venture might be similar but they are not the same. A business can come in different form..."