While Partnerships and Joint Ventures Have Some Similarities, They Have

question 6

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)CCPC partners in a partnership, and CCPC members in a joint venture, are both restricted to their profit-sharing ratio of the $500,000 small business deduction limit.
• B)Joint ventures are more limited in their use than partnerships, although they have more flexibility with regard to their tax decisions.
• 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 and partnerships are not separate taxable entities.

---

Definitions:

Net Income

The amount of money a company retains as profit after removing expenses and taxes from its revenue.

Sales Growth

The increase in sales over a specific period, indicating the health and scalability of a business.

Costs Percentage

The proportion of costs (operational, production, etc.) relative to some base measure, such as sales.

Fixed Assets

Long-term tangible property or equipment that a company owns and uses in its operations to generate income.