A joint venture and a partnership are each made when two or more parties want to join the same team. Their purposes vary from businesses wanting to attract more customers to wanting to increase profits. In addition to obvious similarities, there are numerous differences to consider between a joint venture and a partnership in Texas.
Joint venture
A joint venture is created and managed by two or more parties. It is the collective, shared ownership of a company or project. In some cases, it is the merging of two large companies. Frequently, one of the reasons for a joint venture is to expand into new markets and geographic locations.
Business partnership
A business partnership is an agreement that is created and managed by two or more parties. Partners could be individuals, businesses or organizations. The most common example is two partners who start and manage a business together.
The differences
Both a joint venture and a partnership consist of two or more parties that unite to create a business. A joint venture occurs on a larger scale and often involves corporations that want to expand national or global levels. A partnership usually involves individuals with limited assets or small business owners who may feel that they have to find partners to survive in their industry. According to business law, both a joint venture and a partnership involve legally binding contracts that can be enforced or challenged in court.
A joint venture and a partnership include the merging of two individuals, companies or organizations for the purpose of improving a business. A joint venture often involves large companies that want to expand their operations geographically. A partnership consists of individuals (or sometimes companies) who want to combine their assets and share the ownership of a company.
