A Contractual Arrangement Whereby Two or More Parties Undertake an Activity

question 51

Multiple Choice

A contractual arrangement whereby two or more parties undertake an activity which is subject to joint control

• A) a consol
• B) a preferred stock
• C) a joint venture
• D) a mutual fund

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Definitions:

Net Profits

The amount of money that remains from revenues after all operating expenses, taxes, and interest have been deducted.

Performance Period

The specific timeframe over which the output or effectiveness of an activity or individual is measured.

Reinforcement Theory

A motivational theory suggesting that people are likely to repeat behavior that is rewarded and avoid behavior that is punished.

Operant Conditioning

An educational method where the intensity of an action is altered through rewards or penalties.