difference between joint venture and MNC
Answers
Answer:
Explanation:
Joint Venture is a form of business organization which is temporary in nature. It is established for a specific purpose or to accomplish a certain task or activity and when this purpose is completed the joint venture comes to an end. Joint venture is not exactly same as partnership, which is also a type of business entity, that come into existence when two or more persons come together to share business profits. The partnership business is understaken either by all the partners or by one partner acting on behalf of all the partners.
main difference between partnership and joint venture is that partnership is not limited to a particular venture, whereas joint venture is limited to a particular venture. Similarly, there are other distinguishing points between the two terms
Joint Venture is a business formed by two or more than two persons for a limited period and a specific purpose. A business arrangement where two or more persons agree to carry on business and have mutual share in the profits and losses, is known as Partnership.
Governing Act There is no such specific act. The partnership is governed by the Indian Partnership Act, 1932.
Business carried on by Co-venturers Partners
Status of Minor A minor cannot become a co-venturer. A minor can become a partner to the benefits of the firms.
Basis of Accounting Liquidation Going Concern
Trade Name No Yes
Ascertainment of Profit At the end of the venture or on interim basis as the case may be. Annually
Maintenance of separate set of books Not necessary Mandatory