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Following are the differences between Partnership and Joint Venture except:
- a)Joint venture is essentially planned for short term mainly for one transaction.
However, partnerships are normally undertaken as going concerns and are expected to last for a very long period. - b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.
- c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.
- d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.
Correct answer is option 'D'. Can you explain this answer?
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Following are the differences between Partnership and Joint Venture ex...
Differences between Partnership and Joint Venture
1. Duration:
- Partnership: Partnerships are normally undertaken as going concerns and are expected to last for a very long period.
- Joint Venture: Joint ventures are essentially planned for short term mainly for one transaction.
2. Name of Participants:
- Partnership: The persons involved in a partnership are called partners.
- Joint Venture: The persons involved in a joint venture are called co-venturers.
3. Governing Statute:
- Partnership: Partnerships are governed by the Indian Partnership Act, 1932.
- Joint Venture: Joint ventures do not have a specific statute of the Government governing them.
4. Legal Documentation:
- Partnership: The basic relationship between the partners is defined by the partnership deed.
- Joint Venture: A Memorandum of Understanding is mandatory to be drafted to spell out the relationship between the co-venturers.
5. Purpose:
- Partnership: Partnerships are formed to carry on a business or profession with a view to making a profit.
- Joint Venture: Joint ventures are formed for a specific project or venture to achieve a common goal.
6. Liability:
- Partnership: Partners have unlimited liability for the debts and obligations of the partnership.
- Joint Venture: Co-venturers may have limited liability depending on the terms of the joint venture agreement.
7. Control and Management:
- Partnership: Partners have equal rights in the management and control of the partnership unless stated otherwise in the partnership deed.
- Joint Venture: The control and management of a joint venture are determined by the terms agreed upon in the joint venture agreement.
8. Termination:
- Partnership: A partnership can be dissolved by mutual consent, expiry of the agreed term, death of a partner, bankruptcy, or court order.
- Joint Venture: A joint venture can be terminated upon completion of the specific project or venture, expiration of the agreed term, achievement of the common goal, or by mutual consent.
9. Taxation:
- Partnership: Partnerships are taxed as separate entities, and partners are individually taxed on their share of partnership profits.
- Joint Venture: Joint ventures are generally taxed as separate entities, and co-venturers are individually taxed on their share of joint venture profits.
10. Profit Sharing:
- Partnership: Profits and losses in a partnership are shared among the partners according to the agreed upon profit-sharing ratio.
- Joint Venture: Profits and losses in a joint venture are shared among the co-venturers according to the terms agreed upon in the joint venture agreement.
The option D, which states that a Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers, is incorrect as it is a difference between partnership and joint venture. The basic relationship between partners in a partnership is defined by the partnership deed.
1. Duration:
- Partnership: Partnerships are normally undertaken as going concerns and are expected to last for a very long period.
- Joint Venture: Joint ventures are essentially planned for short term mainly for one transaction.
2. Name of Participants:
- Partnership: The persons involved in a partnership are called partners.
- Joint Venture: The persons involved in a joint venture are called co-venturers.
3. Governing Statute:
- Partnership: Partnerships are governed by the Indian Partnership Act, 1932.
- Joint Venture: Joint ventures do not have a specific statute of the Government governing them.
4. Legal Documentation:
- Partnership: The basic relationship between the partners is defined by the partnership deed.
- Joint Venture: A Memorandum of Understanding is mandatory to be drafted to spell out the relationship between the co-venturers.
5. Purpose:
- Partnership: Partnerships are formed to carry on a business or profession with a view to making a profit.
- Joint Venture: Joint ventures are formed for a specific project or venture to achieve a common goal.
6. Liability:
- Partnership: Partners have unlimited liability for the debts and obligations of the partnership.
- Joint Venture: Co-venturers may have limited liability depending on the terms of the joint venture agreement.
7. Control and Management:
- Partnership: Partners have equal rights in the management and control of the partnership unless stated otherwise in the partnership deed.
- Joint Venture: The control and management of a joint venture are determined by the terms agreed upon in the joint venture agreement.
8. Termination:
- Partnership: A partnership can be dissolved by mutual consent, expiry of the agreed term, death of a partner, bankruptcy, or court order.
- Joint Venture: A joint venture can be terminated upon completion of the specific project or venture, expiration of the agreed term, achievement of the common goal, or by mutual consent.
9. Taxation:
- Partnership: Partnerships are taxed as separate entities, and partners are individually taxed on their share of partnership profits.
- Joint Venture: Joint ventures are generally taxed as separate entities, and co-venturers are individually taxed on their share of joint venture profits.
10. Profit Sharing:
- Partnership: Profits and losses in a partnership are shared among the partners according to the agreed upon profit-sharing ratio.
- Joint Venture: Profits and losses in a joint venture are shared among the co-venturers according to the terms agreed upon in the joint venture agreement.
The option D, which states that a Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers, is incorrect as it is a difference between partnership and joint venture. The basic relationship between partners in a partnership is defined by the partnership deed.
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Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer?
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Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer?.
Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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ample number of questions to practice Following are the differences between Partnership and Joint Venture except:a)Joint venture is essentially planned for short term mainly for one transaction.However, partnerships are normally undertaken as going concerns and are expected to last for a very long period.b)The persons involved in a joint venture are called co-venturers whereas persons involved in a partnership are called partners.c)Any specific statute of the Government does not govern joint ventures but the Indian Partnership Act, 1932, governs partnerships.d)Memorandum of Understanding is mandatory to be drafted to spell the relationship between the co-venturers whereas the basic relationship between the partners is defined by the partnership deed.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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