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 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.

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.

12. Thank you