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Difference between joint stock company and joint venture?
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Difference between joint stock company and joint venture?
Joint Stock Company

A joint stock company is a business entity where multiple shareholders own the company. It is a form of business organization that can be publicly or privately held. When a company wants to raise capital by issuing stocks, it can do so by offering its shares to the public or to private investors. The shareholders are entitled to receive a portion of the company's profits in the form of dividends. The company is managed by a board of directors who are elected by the shareholders.

Joint Venture

A joint venture is a business agreement between two or more parties who agree to combine their resources and expertise to achieve a specific goal. Joint ventures are usually formed to undertake a specific project or business venture. Unlike a joint stock company, joint ventures are not separate legal entities and do not have their own shares. Instead, the parties involved in the joint venture contribute their assets, skills, and expertise to the project and share in the profits and losses.

Differences between Joint Stock Company and Joint Venture


  • A joint stock company is a separate legal entity, while a joint venture is not

  • A joint stock company can issue shares to raise capital, while a joint venture does not have its own shares

  • In a joint stock company, shareholders have limited liability, while in a joint venture, liability is shared by the parties involved

  • A joint stock company is managed by a board of directors, while a joint venture is managed by the parties involved

  • A joint stock company is usually formed for a long-term business venture, while a joint venture is formed for a specific project or venture



Conclusion

In conclusion, while both joint stock companies and joint ventures involve multiple parties working together, they have distinct differences. Joint stock companies are separate legal entities that issue shares to raise capital, while joint ventures are formed for a specific project or venture and involve shared assets and expertise. Understanding the differences between these two forms of business organization is important for entrepreneurs looking to start a new venture.
Community Answer
Difference between joint stock company and joint venture?
A company is an artificial person having seprate legal entity, perpentual existance and a common seal.For e.g. reliance jioOn the other hand joint venture is a contract in which 2 or more company come together and run the company together for their personal benifits . For e.g. Maruti Suzuki , hero honda,etc. 
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Difference between joint stock company and joint venture?
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