How Is an Equity Alliance Different from a Joint Venture

question 26

Multiple Choice

How is an equity alliance different from a joint venture?

• A) An equity alliance involves ownership that facilitates transaction-specific ventures; a joint venture involves taking ownership by buying stock.
• B) An equity alliance involves taking ownership in a partner; a joint venture involves two or more people owning a firm.
• C) An equity alliance involves taking ownership in a partner; a joint venture involves taking ownership by buying stock.
• D) An equity alliance involves partners contributing equity to a joint venture; a joint venture involves two or more people owning a firm.

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Definitions:

Office Supplies

Items used in offices for daily operations, such as paper, pens, and staplers.

Interest-Bearing Note

A promissory note with a specified interest rate, where the issuer agrees to pay the bearer interest in addition to repaying the principal amount at maturity.

Adjusting Entries

Accounting records finalized at the close of an accounting period to properly assign income and expenses to the period they truly belong to.

Annual Accounting Period

A 12-month time span used by businesses for financial reporting and accounting purposes.