Which of the Following Is True Regarding Joint Ventures

question 60

Multiple Choice

Which of the following 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:

Disbursements

Payments made by a business in the course of its operations, often involving the outflow of cash to vendors or suppliers.

Control Procedures

Measures and policies implemented by a firm to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Petty Cash Fund

A minor sum of money maintained for the purpose of covering various minor costs through immediate transactions.

Replenished

The process of refilling or restoring inventory, supplies, or funds to their previous level or to a desired level of capacity.