Which of the Following Is True of Joint Ventures

question 39

Multiple Choice

Which of the following is true of joint ventures?

• A) They are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution.
• B) They directly violate Section 2 of the Sherman Act.
• C) They do not violate Section 1 of the Sherman Act as they involve cooperation between actual or potential competitors.
• D) They refer to the acquisition of one company by the other.

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Definitions:

Limited Liability Company

An organizational model that integrates the tax treatment of a partnership or sole proprietorship with the benefit of limited liability offered by a corporation.

Establish

To set up or lay the foundation for something, often referring to creating a new business, institution, or system.

General Partners

Individuals in a partnership who have full liability for the debts of the partnership and take part in managing the business.

Conversion Clause

A provision in a contract or policy allowing for the change of one form of benefit or contract to another, such as converting from a term to a whole life insurance policy.