How Do Joint Ventures Differ from Private Corporations

question 35

Multiple Choice

How do joint ventures differ from private corporations?

• A)The joint venturers must share the risks and profits of the joint venture equally.
• B)There can only be two parties in a joint venture.
• C)A joint venture does not have a board of directors.
• D)Venturers cannot make unilateral decisions.

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Definitions:

Induced Consumption

Consumer spending that increases or decreases as a result of changes in income, as opposed to autonomous consumption that does not change with income.

Disposable Income

Income available to a household or individual after taxes have been paid, available for spending or saving.

Autonomous Consumption

The level of spending on goods and services that occurs even when income is zero, representing non-discretionary, baseline consumption.

Disposable Income

The financial stipend available to households for spending and saving endeavors after income taxes are considered.