The Formation of a New Corporation, Jointly Owned by Two

question 40

Multiple Choice

The formation of a new corporation, jointly owned by two or more companies agreeing to share in the revenues, expenses, and control, is known as

• A) a joint venture.
• B) a limited liability company.
• C) a partnership.
• D) sole proprietorship.
• E) an S corporation.

---

Definitions:

Harvest

The act of gathering mature crops from the fields, or by extension, reaping the benefits or results of any activity.

Investment Return

Investment return is the gain or loss on an investment over a specified time period, typically expressed as a percentage of the investment's initial cost.

Customer Acquisition Cost

the total cost associated with acquiring a new customer, including marketing and sales spending.

Marginal Cost

The expenditure involved in creating one more unit of a product or service.