The main differences between joint venture and consignment are as under:
Joint venture: It is a temporary partnership business without a firm name.
Consignment: It is an extension of business by principal through agent.
Joint venture: The parties involving in joint venture are known as co-ventures.
Consignment: Consignor and consignee are involving parties in the consignment.
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.
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.
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.
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.