An advance refers to a payment on account or a loan. It is particularly relevant in a partnership context, referring to amounts paid into the partnership that exceed agreed capital contributions. Under the Partnership Act 1890, such advances collect interest unless otherwise agreed by the partners. On dissolution, advances are repaid after external creditors but before the distribution of remaining capital to the partners.
A joint venture is a commercial undertaking jointly entered by two or more entities, limited by time or activity, where each participant accounts for their own share of assets, liabilities, and cash flows.
An association of two or more people (partners) formed for the purpose of carrying on a business. Partnerships vary in legal structure and liability among partners and are specifically governed by laws and agreements.
A Partnership Agreement, also known as Articles of Partnership, outlines the partnership terms, including profit sharing, salaries, interest on capital, and introduction or retirement of partners, governed by the Partnership Act 1890.
