What is the difference between a joint venture and a partnership?

What is the difference between a joint venture and a partnership?

A joint venture is a business arrangement where two or more parties create a new entity, sharing resources and profits. A partnership, on the other hand, is a more informal agreement where individuals or entities collaborate without forming a new legal entity.

Can you give me an example of each?

Sure! An example of a joint venture is when two companies, like a tech firm and a manufacturing company, collaborate to create a new product. A partnership example could be two lawyers opening a law firm together, sharing profits and responsibilities.

What are the advantages of a joint venture?

Advantages of a joint venture include shared risk, access to new markets, combined expertise, and increased resources for projects.

Are there any disadvantages?

Yes, disadvantages can include potential conflicts between partners, shared profits, and the complexity of managing a joint entity.