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Difference Between Joint Venture And Consignment

Difference Between Joint Venture And Consignment

1. Nature
Joint venture: it’s a temporary partnership company with no company name.
Consignment: it’s an extension of business by main through representative.

2. Parties
Joint venture: The parties involving in joint venture are called co-ventures.

3. Relation
Joint venture: The connection between co-ventures is just like the spouses in partnership business.
Consignment: The relation between the consignor and consignee is’main and representative’.

4. Sharing Gain
Joint venture: The gains ans losses of joint venture are shared amongst the co-ventures within their agreed proportion.
Consignment: The losses and profits aren’t shared between the consignor and consignee. Consignee gets just the commission.

5. All rights
Joint partnership: The co-ventures in a joint venture possess equal rights.
Consignment: In consignment, the consignor enjoys principal’s right whereas consignee appreciates the right of agent.

6. Exchange Of Information
Consignment: The consignee prepares an account sale which includes a details of business activities carried on and has been delivered to the consignor.

7. Ownership
Joint Venture: Each of the co-ventures would be the proprietors of the joint venture.

8. Method Of Maintaining Accounts
Joint venture: There are different methods of maintaining accounts in joint venture.As each arrangement the co-ventures keep their accounts.
Consignment: In consignment, there’s simply 1 method of maintaining account.

9. Basis Of Account
Consignment: Actual basis is adopted in consignment.

10. Continuity
Joint venture: When the particular venture is finished, the joint venture is terminated.
Consignment: The joys of company exists according to the openness of the two consignor and consignee.

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