Joint Venture vs Partnership
Joint Venture and Partnership are normally considered one and the same but strictly speaking there is a lot of difference between the two.
Two or more companies join together to get into business in the case of a joint venture. On the other hand two or more individuals join together to get into business in the case of a partnership. This is the chief difference between joint venture and partnership.
There is a difference in the very definition of the two terms, namely, joint venture and partnership. Joint venture is in fact an agreement in the form of a contract between two or more companies that join together in business to perform a business task like generating a product or so. The agreement may aim at the sharing of profits and losses that result in the business.
On the contrary partnership is in fact an agreement in the form of a contract between two or more individuals or parties that join together in business. The agreement is regarding the sharing of profits and losses pertaining to the business. This is indeed one of the main differences between joint venture and partnership.
There are partnership rules in a partnership and individuals in a partnership are eligible to claim capitol cost allowance (CCA) as per the partnership rules. On the other hand in the case of a joint venture the companies that come together in business can use as much as or as little of the CCA as they wish.
An important difference between a joint venture and a partnership is that a joint venture can last only for a particular period of time till the business goal of the companies involved in joint venture is reached. On the other hand a partnership can last for an unlimited period of time as long as there is good understanding between the parties concerned in business.