Question

Distinguish between the following.

Joint venture and Partnership firm.

Answer 1

Basis of Difference	Joint Venture	Partnership
Formation	Two or more organisations come together to achieve mutual benefits and gains	Two or more individuals join hands to form a partnership
Separate entity	A separate entity may or may not br formed.	A separate entity is formed.
Motive	It may be formed for many purposes such as sharing resources, development, etc.	The basic motive of partnership is to earn profits.
Profit	Profit is calculated on completion of every venture.	Profit is calculated annually.
Parties	Parties involved are called co-ventures.	Parties involved are called partners.