What are the differences between a joint venture and a sole proprietorship?

A joint venture (JV) is a commercial arrangement between two or more parties who agree to enter into a mutual business venture for the purpose of providing mutual benefit and making profits. It differs from a sole proprietorship in that two or more parties are involved in decision-making and the venture is a separate legal entity from any of the individual parties involved. In a sole proprietorship, one person has full control of the business and all of its decisions. The sole proprietor is the owner of the business and is responsible for all of the decisions made and all of the profits or losses of the business. In a joint venture, on the other hand, each party involved must agree on the decisions made and each party is responsible for their own profits and losses. In addition, each party must have a vested interest in the joint venture. They must have an ownership stake in the venture and must contribute resources such as money, goods, or services. The major difference between the two is that joint ventures involve two or more parties while a sole proprietorship involves just one person. In a joint venture, the parties involved must agree on all decisions and each party has a vested interest in the venture, while a sole proprietorship is owned and operated by one individual.

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What are the differences between a joint venture and a sole proprietorship?

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