Equity Joint Ventures (EJV)
– An EJV must take the form of a limited liability company.
– The profits and losses of an EJV must be allocated according to the ratio of capital contributions made by the joint venture partners.
Cooperative Joint Ventures (CJV)
A CJV offers more flexibility to the parties involved because they can decide how the profits and losses will be allocated among themselves and this need not be in proportion to their respective capital contributions.