While Partnerships and Joint Ventures Have Some Similarities, They Have

question 4

Multiple Choice

While partnerships and joint ventures have some similarities, they have significant differences. Which of the following is FALSE with regard to partnerships and joint ventures?

• A) Neither joint ventures nor partnerships are separate taxable entities.
• B) Partners in a partnership and members of a joint venture are both restricted to their profit-sharing ratio of the $500,000 small business deduction limit.
• C) All partners in a partnership are subject to the same CCA decision in a given tax year, while members of a joint venture may each decide their own amount of CCA to be deducted.
• D) Joint ventures are more limited in their use than partnerships, although they have more flexibility with regard to their tax decisions.

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Definitions:

Typical Investor

An average or representative investor who reflects the general behaviors and preferences of the larger investing public.

High Risk Assets

Investments known to have a greater chance of loss or extreme fluctuations in value, often seeking higher rewards.

Low Risk Assets

Investments that have a lower probability of loss or less volatility compared to the market average.

Market Structure

The organizational and other characteristics of a market, including the nature of competition and the degree of market concentration.