Which of the Following Statements Is Correct

question 23

Multiple Choice

Which of the following statements is correct?

• A) All joint arrangements which are not structured through a separate vehicle are classified as joint ventures.
• B) For a joint venture, the rights pertain to the rights and obligations associated with individual assets and liabilities, whereas with a joint operation, the rights and obligations pertain to the net assets.
• C) Where the joint operators have designed the joint arrangement so that its activities primarily aim to provide the parties with an output it will be classified as a joint venture.
• D) In considering the legal form of the separate vehicle if the legal form establishes rights to individual assets and obligations, the arrangement is a joint operation. If the legal form establishes rights to the net assets of the arrangement, then the arrangement is a joint venture.