Learning Materials For Accounting, Management , Finance And Economics.

Wednesday, October 5, 2011

Difference Between Joint Venture And Partnership

The differences between joint venture and partnership are stated below:

1. Parties

Joint venture: The participant in joint venture is known as co-ventures.
Partnership: The participant in partnership is known as partners.

2. Nature

Joint venture: It is temporary in nature and is terminated as soon as the venture is completed.
Partnership: It is a going concern business.

3. Name

Joint venture: It does not need any single name to carry on the activity.
Partnership: It always bears a first name.

4. Profit

Joint venture: Profits are ascertained after the completion of each venture.
Partnership: Profits are ascertained annually.

5. Basis Of Account

Joint venture: Cash basis account is followed.
Partnership: Accrual basis of account is followed.