CMA Foundation · Fundamentals of Financial and Cost Accounting · Joint Venture
How does a joint venture differ from a partnership?
A joint venture is formed for a specific project and is temporary, ending when the project is completed, whereas a partnership generally carries on a continuing business. Both share profits, so the difference lies in purpose and duration.
- AA joint venture is for a specific project and is temporary, whereas a partnership is generally for continuing businessCorrect
- BA joint venture always has a written deed while a partnership never does
- CA joint venture requires a minimum of ten members while a partnership requires two
- DA joint venture cannot share profits while a partnership can
Explanation
The key difference is duration and purpose: a joint venture is for a particular project and ends with it, while a partnership is usually for continuing business. The other statements are false: a joint venture does share profits and has no ten-member requirement.
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More Joint Venture questions
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