Advantages and Disadvantages of Joint Engineering Ventures (Essay Sample)

Advantages and Disadvantages of Joint Engineering Ventures
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Introduction
A partnership is a business that is operated and owned by two or more partners. A joint venture, on the other hand, is a partnership with more advantages and disadvantages than those found in a general partnership. Some benefits of a joint venture include easy formation and ability to work with other business types. The joint venture also has some disadvantages. Some of them include lack of legal protection to personal property and conflicts amongst partners.
Advantages
Taxation is one of the many benefits enjoyed after forming a joint venture. A partnership is not required to file taxes as a business entity. Engineers who venture in this business are allowed to pass their portion of partnership profits and losses directly to their personal returns. They are thus required to pay taxes according to the amount of tax rates in their personal income. Additionally, losses and bad debts documented in partner's tax return can be used as extra income from other sources (Dibner, 2002).
Another advantage of a joint venture is the ability to join hands when formulating new policies. Partners share total workload; therefore, too much work is not left to particular individuals. Moreover, members of a joint venture share financial responsibility when capitalizing the business (Harrigan, 2006). Engineers who engage in this form of venture can adopt different management structures. This is because joint ventures are not regulated as corporations.
Disadvantages
Members of a joint venture have unlimited liability for business debts and obligations. The venture is not a separate legal entity from the partners of the business. It thus means that a business creditor has a legal right to pursue personal property such as vehicle, home or bank account in case the joint venture is not in a good financial position to repay the loan. Likewise, a partner is allowed to pursue business assets in case the partnership fails to repay the loan. Additionally, any partner is responsible for an act of negligence to the other partners' affairs (Kobayashi, 2009).
Another disadvantage is...