Partnership vs Joint Venture for Herbal Business

This assignment examines the most suitable business structure for a long-term herbal product venture. It compares partnerships and joint ventures, arguing that a partnership is more appropriate due to its focus on long-term operations, shared responsibility, and control over business decisions. The document also addresses tax implications and legal considerations, ultimately recommending a partnership structure for Xiaojing, Lance, and Nick's herbal product business.

Running head: BUSINESS AND CORPORATE LAW
Business and Corporate Law
Name of the Student
Name of the University
Author Note

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Executive Summery
In this assignment, the key features of a partnership, which is compare with a joint
venture, has discussed. The special features and importance of the partnership and joint venture
is also part under the partnership variation.

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Table of Contents
The key features of a partnership as compared to a joint venture...................................................4
The Partnership............................................................................................................................4
Risks and Rewards.......................................................................................................................4
Unlimited Liability......................................................................................................................4
Share of Profits............................................................................................................................4
Decision Making Process............................................................................................................4
Ownership Sharing......................................................................................................................5
Flexibility.....................................................................................................................................5
Taxation.......................................................................................................................................5
Tenure..........................................................................................................................................5
Dissolution of the partnership......................................................................................................5
Joint Venture....................................................................................................................................6
Legislations governing partnership and Joint venture in Australia.................................................6
List of partnership legislations in Australia.....................................................................................6
The Difference between partnership and Joint Venture..............................................................7
Recommendation.............................................................................................................................7
Reference.........................................................................................................................................9

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The key features of a partnership as compared to a joint venture
The Partnership
Risks and Rewards
According to the terms of the partnership, the risks and rewards are part in it, which always
processed through the share by the individuals (Vivoda, 2017).
Unlimited Liability
The liability in the partnership is the common terms where the partners are bound to holds the
liabilities jointly in the partnership business. Under the liability of the partners the obligations of
paying debts in the partnership business also holds the responsibilities for an unlimited extent.
For any damages or loss which cause from any wrongful omissions or illegal activities by the
partners where the actual potential liabilities applicable for the third party.
Share of Profits
Under the terms of partnership, every partner in the partnership business has the rights to share
equally the profits and losses. There are also some exceptions in this matter if the terms are not
mentioned in the partnership agreements. The share of the profits and losses always depend on
the partners according to their partners.
Decision Making Process
According to the terms of the partnership, all the partners have equal rights to take decision,
which are related with their partnership business. The rights of decision making process is not
applicable for dormant partners.

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Ownership Sharing
The ownership in the partnership has described the terms where the assets of the business always
shared between the partners for running a partnership business. The assets, which are solely,
belongs to any partners the share of the profits and loss only depends according to it.
Flexibility
The flexibility defines the frameworks or the process where it distributed the freedom in the
partnership where the business must provided with financed and control as a sole proprietorship.
The privacy is another important part in the partnership, which describes the
constitutional and financial matters where it keeps all the details completely private and
confidential. For any disclosure of the privacy in the partnership, it only applicable according to
the interest of the partners.
Taxation
The taxation is the part of any business, which is, runs by individually or by the partners. The
partners are bound to pay tax for the partnership business only. They are not require to pay
individually for the business.
Tenure
According to the terms of the partnership, it is never applicable for the purpose of one or two
projects, which are not process for the long-term business.
Dissolution of the partnership
The partnership only comes to end if the partners dissolute the business mutually or death of any
partner.

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Joint Venture
The joint venture is defines the aim to carry the business where it helps in the specific
project and it only become end when the purpose has applied in the business. The joint venture
also defines as a partnership without a name or running firm business. It is a special kind of
partnership without a firm name. Under the joint venture it only concern about the accounting
concept where it was not followed by the joint ventures. The parties to a joint venture are called
co-ventures. Under this partnership, it defines the form of temporary business activity. In this
process of partnership, the profits and losses always distributed in a proper agreed proportion
where it will not distributed in equally. It is an agreement for where the for poling business
abilities and capital to make profit in the business.
Legislations governing partnership and Joint venture in Australia
There are legislation which given partnership in Australia. However, Joint ventures do
not have any specific law and are governed by common law such as Contract law, Negligence
and Agency Law.
List of partnership legislations in Australia
Jurisdiction Legislation
Commonwealth Partnership Act 1963
New South Wales Partnership Act 1892
Queensland Partnership Act 1891
Tasmania Partnership Act 1891

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South Australia Partnership Act 1891
West Australia Partnership Act 1895
Victoria Partnership Act 1958
Northern Territories Partnership Act 1997
The Difference between partnership and Joint Venture
The joint venture is defines the aim to carry the business where it helps in the specific project
and it only become end when the purpose has applied in the business. The joint venture also
defines as a partnership without a name or running firm business. It is a special kind of
partnership without a firm name (Haynes et al. 2016).
The partnership is defines where a business only runs through the partners with a
registered business and it only omitted for the death of the partner. The Joint venture is also end
under some specific purposes and the venture can be vanished.
Recommendation
According to the case study, for choosing a business structure under Australia it is
necessary to follow the legislations. Therefore, it is important to looks for the structure and
requirements of the business whether it has processed under the joint venture and partnership. It
has been if Xiaojing, Lance and Nick want to work together to running an herbal product
business. This is a form of business which will be continued in the long run. Therefore, the
structure required for carrying out the business activity has to be in accordance to the business
needs. According to the definition of joint venture and partnership, it helps to identified that
partnership is a better form of unincorporated business as it always compared with a joint

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venture for carrying out long-term business operations. According to ---- people or organization
that carries out joint ventures usually has the purpose of property developments, transportation
agreements, mining syndicates or publishing agreements. These activities are applicable for a
short-term period. Now it can be stated that partnership is the best possible unincorporated
business structure for the herbal product business as it would only be successful in the long-run.
In a partnership, the partners would be more responsible for the controlling and managing
of the business and not only takes care of their own functional areas but also the operational
areas in the business where the partners would directly affected by it. It can make the conflicts
that a joint venture has ability to provide the parties advantages in relation to tax benefits.
However, a partnership business always helps to give the scope for significant expansion and the
tax implications are to an extent, which may persuade selecting joint venture as a form of
business (Vivoda, 2017).
The courts do not assess whether a business is a joint venture or a partnership based upon
the name, which has provided to it but based on the features of the business. Here it is clear that
the business is to be carried out on permanent purposes and not temporary purposes by the three
individuals. The structure of partnership would also allow the partners to have significant control
of the business and change the structure to an incorporated company in the future. In addition it
has been provided by ---- that in joint venture although functions are sorted out the commitment
of the co-ventures are not as much as that in a partnership business. Therefore, it is advised to
Xiaojing, Lance and Nick to carry on the herbal product business in form of a partnership.

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Reference
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Partnership’for obesity prevention policy in Australia: Investigating the recommended
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Park, S. H., & Ungson, G. R. (1997). The effect of national culture, organizational
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Management journal, 40(2), 279-307.
Vivoda, V. (2017). Australia and Germany: a new strategic energy partnership.