Introduction to Joint Venture 🤝

Scenario:

• Raj is a builder. Simran is an architect.
• They decide to build a Shopping Mall together.
• They agree to share profits 50:50.
• Once the mall is built and sold, their partnership ends.
• This temporary partnership is called a Joint Venture.

Definition: "A Joint Venture is a temporary partnership formed for a specific purpose or project. Once the purpose is achieved, the venture is dissolved."

Parties: The partners are called Co-Venturers.

Key Features 🌟

1. Temporary Nature: It has a limited life (e.g., 1 year or 1 project).
2. Specific Purpose: Build a bridge, underwrite shares, sell a consignment of goods.
3. No Firm Name: Usually, they don't give a name to the firm (unlike "Raj & Co.").
4. Profit Sharing: Profits/Losses are shared in an agreed ratio.

Loading diagram…

Quiz Time! 🎯

Loading quiz…

💡 Final Wisdom: "Think of it like a 'Group Project' in college. You come together, do the work, get the grade (Profit), and then go your separate ways." 🎓

Next up: Joint Venture vs Consignment - Spot the difference! 🆚