Which of the Following Statements Is True Regarding Joint Ventures

question 33

Multiple Choice

Which of the following statements is true regarding joint ventures?

• A) Participants in a joint venture usually share profits equally, but share losses based on the percentage of contribution.
• B) Participants in a joint venture usually share losses equally, but share profits based on the percentage of contribution.
• C) The joint venture is not automatically terminated when one of the members dies.
• D) A joint venture requires the filing of a formal agreement with the state.
• E) Courts frequently apply sole proprietorship law to joint ventures.

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Definitions:

Particular Industry

Relates to a specific sector or category of business that shares common characteristics or products.

Prospectus

A formal document that is required by and filed with the Securities and Exchange Commission that provides details about an investment offering for sale to the public.

Investment Policy

Investment Policy outlines a strategy, guidelines, and constraints for managing an investment portfolio.

Mutual Fund

An investment vehicle that pools money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.