Difference between "joint venture" and "consortium"

Question

Dear native teachers,I'd like to know what the difference between "joint venture" and "consortium" is.They mean the same for me, but maybe there's a difference.Thanks in advance for your help.RENAN[H]

Avangi · Accepted Answer

I'm not sure yet what the dictionary says, but the difference to me is that "joint venture" focuses on the purpose, or the action; and "consortium" focuses on the organization.

I suppose the purpose in either case could be to make money.

The first is an ADventure. We're going to DO something.

The second might exist only on paper.

On a case-by-case basis, they may or may not amount to the same thing. People don't always live up to what they call themselves.

Edit.
consortium 2. Any association or partnership
(Definition 1. is a purely financial organization.)

Of course a joint venture is a sort of organization, but to me it's still a venture.

Mister Micawber · Answer

There is liable to be a legal difference. These are the definitions from Investopedia:

Consortium: A group made up of two or more individuals, companies or governments that work together toward achieving a chosen objective. Each entity within the consortium is only responsible to the group in respect to the obligations that are set out in the consortium's contract. Therefore, every entity that is under the consortium remains independent in his or her normal business operations and has no say over another member's operations that are not related to the consortium. Consortiums are often used within the non-profit sector, specifically with educational institutions. They often pool resources such as libraries and professors and share them among the members of the group. Several groups of North American colleges and universities operate under consortiums. For-profit consortiums also exist, but they are less prevalent. One of the most famous for-profit consortiums is the airline manufacturer Airbus.

Joint venture: The cooperation of two or more individuals or businesses-~~each agreeing to share profit, loss and control~~-in a specific enterprise. This is a good way for companies to partner without having to merge. JVs are typically taxed as a partnership.

And from Law.com:

Consortium: a group of separate businesses or business people joining together and cooperating to complete a project, work together to perform a contract or conduct an on-going business. For example, six companies, including Bechtel and Kaiser, joined together in a consortium to build Boulder (now Hoover) Dam, with each providing different expertise or components.

Joint venture: an enterprise entered into by two or more people for profit, for a limited purpose, such as purchase, improvement and sale or leasing of real estate. A joint venture has most of the elements of a partnership, such as shared management, the power of each venturer to bind the others in the business, division of profits and joint responsibility for losses. However, unlike a partnership, a joint venture anticipates a specific area of activity and/or period of operation, so after the purpose is completed, bills are paid, profits (or losses) are divided, and the joint venture is terminated.

Avangi · Answer

renan torres-riveroThey mean the same for me, but maybe there's a difference.

After studying MrM's post, I'm more inclined to agree with you than I was before. Each has multiple definitions, so if you pick and choose, you can come out with pretty much the same thing.
The terms can be used broadly or narrowly, or anything in between.

- A.

Mister Micawber · Answer

What I'm suggesting, however, is that you had better know the difference before you attempt to form one of them.

Avangi · Answer

I strongly agree. I for one would not attempt it without the services of a very good attorney. The statutes undoubtedly vary in different jurisdictions.

- B.

Anonymous · Answer

renan torres-rivero Dear native teachers,I'd like to know what the difference between "joint venture" and "consortium" is.They mean the same for me, but maybe there's a difference.Thanks in advance for your help.RENAN

The simple and basic difference is that
consortium is a partnership keeping the legal identity of the partners separate. In joint venture, the partners agree to forma a new legal identity with equity input of each. Practically in the legal sens a JV would a a new company

Difference between "joint venture" and "consortium"

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