The Major Factors to Consider in Distinguishing Between Jointly Controlled

question 4

Multiple Choice

The major factors to consider in distinguishing between jointly controlled operations and jointly controlled assets are:

• A)whether the venturers receive revenue from the sale of a joint product or the output from the assets
• B)whether the entity is structured as a company or a trust
• C)who owns,and the manner of control over,the assets being used in the joint venture
• D)both A and C

---

Definitions:

Potential Liability

The possibility of being responsible for future legal judgments or obligations due to current actions, circumstances, or contracts.

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.

Actual Authority

The express and implied powers a principal intentionally grants to its agent.

Implied Authority

Authority of an agent that is not expressly granted but is inferred from the acts or the conduct of the principal.