The main differences between joint venture and consignment
The main differences
between joint venture and
consignment are:
1. NatureJoint venture
: It is a temporary
partnership business
without a firm name.
Consignment
: It is an extension of
business by principal
through agent.
2. Parties
Joint venture
: The parties involving in
joint venture are known as
co-ventures.
Consignment
: Consignor and consignee
are involving parties in the
consignment.
3. Relation
Joint venture
: The relation between co-
ventures is just like the
partners in partnership
firm.
Consignment
: The relation between the
consignor and consignee
is 'principal and agent'.
4. Sharing Profit
Joint venture
: The profits ans losses of
joint venture are shared
among the co-ventures in
their agreed proportion.
Consignment
: The profits and losses
are not shared between
the consignor and
consignee. Consignee gets
only the commission.
5. Rights
Joint venture
: The co-ventures in a
joint venture have equal
rights.
Consignment
: In consignment, the
consignor enjoys
principal's right whereas
consignee enjoys the right
of agent.
6. Exchange Of
Information
Joint venture
: The co-ventures
exchange the required
information among them
regularly.
Consignment
: The consignee prepares
an account sale which
contains a details of
business activities carried
on and is being sent to
the consignor.
7. Ownership
Joint Venture
: All the co-ventures are
the owners of the joint
venture.
Consignment
: The consignor is the
owner of the business.
8. Method Of Maintaining
Accounts
Joint venture
: There are different
methods of maintaining
accounts in joint
venture.As per agreement
the co-ventures maintain
their account.
Consignment
: In consignment, there is
only one method of
maintaining account.
9. Basis Of Account
Joint venture
: Cash basis of accounting
is applicable in joint
venture.
Consignment
: Actual basis is adopted
in consignment.
10. Continuity
Joint venture
: As soon as the particular
venture is completed, the
joint venture is
terminated.
Consignment
: The continuity of
business exists according
to the willingness of both
consignor and consignee.
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