​Which of the Following Is True of a Joint Venture

question 91

Multiple Choice

​Which of the following is true of a joint venture?

• A) A joint venture is a type of partnership in which investors co-own the enterprise.
• B) A joint venture occurs when a company chooses to purchase an existing foreign company, making the purchased company a wholly owned subsidiary of the parent.
• C) ​A joint venture results from the payment by a company for a business function formerly done in house.
• D) ​A U.S.firm is not allowed to enter into a joint venture with a foreign firm.

---

Definitions:

Semiannually

Semiannually refers to an occurrence that happens twice a year, typically at six-month intervals.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures.

Annual Coupon

The annual interest payment received by bondholders, expressed as a percentage of the bond's face value.

Par Value

The face value of a bond or stock, as designated by the issuing company, which may not reflect the market value.