Difference b/w consignment and joint venture and partnership

Meaning and difference b/w joint venture and Consignment, difference b/w joint venture and partnership

1. JSS College of Arts commerce and science BN Road Mysuru Subject:- Financial Accounting 2 Topic:- Difference between Joint venture and Consignment

2. Meaning of joint venture A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

3. Consignment is an arrangement in which goods are left in the possession of an authorized third party to sell. Typically, the consignor receives a percentage of the revenue from the sale (sometimes a very large percentage) in the form of a commission. Meaning of Consignment

4. Difference between joint venture and consignment joint venture Consignment Joint venture is the temporary business between the two firms for a particular purpose or up to limited time period. Consignment is the dispatch of the goods by the consignor to the consignee to be sold by the consignee.

5. The parties involved are known as Co-venturers. The relationship between the co-venturers is of associates and partners. The parties involved are known as Consignor and the Consignee. The relationship between the consignor and consignee is of principal and agent.

6. Joint venture is not governed by any special act, but being a particular partnership, some rules of partnership law are applicable. The buyer can not sell, destroy or transfer the goods. Consignment is governed by the law of agency as given under the Indian Contract Act, 1872. The buyer can sell, destroy or mortgage or transfer as his/her wish.

7. Ownership of goods is transferred after the payment of final installment. Ownership of the goods passes to the buyer just signing the agreement. All the risks are to be borne by the buyer from the date of agreement.  All the risks are borne by the vendor before the payment of final installment

8. Meaning of Partnership Firm It i s 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.

9. 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. Difference between joint venture and Partnership Joint Venture Partnership

10. A joint venture can be described as a contractual arrangement between two companies that aims to undertake a specific task.  a partnership involves an agreement between two parties wherein they agree to share the profits as well as any loss incurred. The members in a partnership can claim a capital cost allowance as per the partnership rules. joint ventures can use as much or as little of the capital cost allowance.

11. There is no specific act that regulates the Joint venture. Partnership firms are governed or regulated by the government. It’s not required to have a specific name. It is required to have an identifiable name to Partnership firm.

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