Discuss the four key differences between project-based, nonequity ventures and equity ventures

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Project-based collaborations differ from the traditional equity joint ventures in four important ways:
1. No new legal entity is created. Partners carry on their activity within the guidelines of a contract.
2. Parent companies do not necessarily seek ownership of an ongoing enterprise. Instead, they contribute their knowledge, expertise, staff, and monetary resources to derive knowledge or other benefits.
3. Collaboration tends to have a well-defined timetable and end date; partners go their separate ways once they have accomplished their objectives or have no further reason for continuation.
4. Collaboration is narrower in scope than in equity joint venturing, typically emphasizing a single project, such as development, manufacturing, marketing, or distribution of a new product.