Which of the Following Is True Regarding Joint Ventures

question 77

Multiple Choice

Which of the following is true regarding joint ventures?

• A)Generally,joint ventures are taxed like corporations.
• B)If one of the members of a joint venture dies,the joint venture is automatically terminated.
• C)Members of a joint venture are agents of the other members.
• D)A joint venture may be formed without drawing up a formal agreement.
• E)Courts frequently apply sole proprietorship law to joint ventures.

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, leading to a potential welfare loss.

Government Failure

A situation where government intervention in the economy causes inefficiencies or leads to a misallocation of resources.

Government Intervention

Actions taken by a government to affect or control various aspects of the economy, such as regulations, subsidies, tariffs, and taxes to correct market failures and promote economic stability.

Regulatory Capture

A situation where regulatory agencies are dominated by the industries they are supposed to be regulating, leading to decision making that benefits the industry at the expense of the public good.