Entertainment Industry Essay

Part B

There are different types of business structure that can be utilised in the media and entertainment industry as because the entertainment industry is quite dynamic and challenging in nature. Each promoter in the entertainment industry should use the business structure they find to be most appropriate in addressing their business needs and to avoid he issues that will arise in the future. There are some business structures promoters could use in the entertainment industry to promote events and gain finance, like:

Partnership

Partnership is the relationship that exists between persons carrying on a business in common with a view to profit. It involves an agreement between two or more parties to enter into legally binding relationship

The joint venture strategy is playing a vital role in this regard as it is not considered to be a legal entity. Instead individuals or companies enter into contracts and make their profit and losses and they pay tax only on their own profits. In joint venture parties are no jointly and severally liable for the losses of the venture whereas in partnership each partner is jointly and severally liable for the debts of the partnership. Joint venture is similar to a partnership, so the business will prepare the joint venture agreement that will exclude the joint venture from being treated as a partnership agreement. Because If they are treated as acting as a partnership they could be subject to unexpected tax and other liabilities. To avoid joint venture from being treated as partnership, joint venture agreement will place control of the daily operation of the business in the hands of an independent operator, who is appointed by each of the participants separately. Joint venture agreement also include an express provision that liability is several and not joint. It also ensures that assets are held separately, as tenants in common. One of the key indicators of a partnerships is profit sharing so contractual joint venture agreement will ensure that the arrangements are structure to avoid