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Distinction between Partnership and Joint venture

 
 

Basis of Distinction

Partnership

Joint Venture

1.   Scope

It is not limited to a specific venture.

It is limited to a specific venture.

2. Persons involved

The persons carrying  on business are individually called Partners

The persons carrying on business are called co-venturers.

3.  Ascertainment of Profit/loss

The profits/losses are ascertained on an annual basis

The profits/losses are ascertained at the end of specific venture (if venture continues for a short period) or an interim basis annually (If venture continues for a longer period).

4.  Act governing

Partnership firms are governed by Indian Partnership Act, 1932.

No specific Act is there.

 

5.Freedom to run                  

Competition

The partners do not have such freedom

 The co-venturers have such freedom

6.Separate Set of           

     Books

 Separate set of   books have to be  maintained

 There is no need for a separate set of books. The accounts can be maintained even in one of the Coventurers books only.

7.  Admission of                                                                                                   

     minor

 A minor can be admitted to the benefits of the firm.

A minor cannot be a Coventurer as he is incompetent to contract.

8.  Nature

Non- terminable

Terminable






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