Midstream Ltd and Delta Ltd Enter into a Business Undertaking

question 19

Multiple Choice

Midstream Ltd and Delta Ltd enter into a business undertaking to lease a 100-hectare vineyard from Pinot Ltd.There is a contractual agreement between the two companies whereby they share control and must agree on all strategic financial and operating decisions.The two companies appoint Todman Management Pty Ltd as the vineyard manager.A separate set of accounting database is established for the undertaking and each investor contributes cash capital to the undertaking.The intention of the investing companies is to market the produce of the vineyard and make a profit.The business undertaking is:

• A) A joint venture operation since the investors have agreed to a sharing of control.
• B) A joint venture entity since it has been established to operate the vineyard with the intention of making a profit.
• C) A simple partnership in which two companies operate as partners in a business undertaking.
• D) None of the above.

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Definitions:

Unilateral Action

An action taken or decision made by one party or nation without the agreement, consent, or participation of others.

Informational Manipulation

The deliberate distortion or withholding of information to influence behavior or perceptions.

Indirect Forcing

A concept that refers to the influence of external or secondary factors on a system or process, often not immediately evident or direct.

Unfreezing Phase

The initial step in the change process where existing behaviors or attitudes are challenged to prepare for new learning or change.