Joint ventures

                             Joint ventures

A joint venture could be defined as a relationship built up for a short period of time for the purpose of achieving a definite purpose . Usually in  this instance a name of a business is not used. once the expected purpose is achieved the joint venture too gets terminated . it is a temporary type of business organization.

             The differences between a joint venture and a partnership

 

Partnership                                                                       Joint venture

- long term continuity when                                                         -   short term continuity when compared                                                                                         compared                                                 
- normally operated with an agreement                                        - no agreement signed

- normally book keeping is maintained                                         - accounting is done under special 
agreement                                                                                      method

- business take place with the business                                       - not operated with a business name
  name

   Limited partnerships

 Within srilanka , permission is not given to start this type of partnership .  in this type of business there too are bound , but with regarding to limited partners their limited is limited only to the capital they have invested .

The features of a limited partnership 

- there are partners with both limited and unlimited liability

- in a limited partnership there should be at least one unlimited partner and a limited of one limited partner

- The limited partners cannot participate in the management activities of the partnership.

- The limited partners have no capacity to enter into agreements ( on behalf of the partnerships )

- There are no possibilities of drawing on the capital without the approval of the other partners.