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By acquiring the target firm through the JV, the corporate investor limits the potential liability to the extent of their investment in the JV corporation.
Journal Entry
An accounting transaction recorded in a journal such that it includes the date, accounts affected, amounts, and description of the transaction.
Debit
An accounting entry that represents either an increase in assets or expenses or a decrease in liabilities, equity, or revenue.
Capital Balances
The amount of money that partners or owners have invested in the business.
Profits and Losses
Financial results of a company's operations, with profits indicating net income and losses indicating net expenses exceeding revenues.
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