Which of the Following Statements Is True Regarding Joint Ventures

question 26

Multiple Choice

Which of the following statements is true regarding joint ventures?

• A)Participants in a joint venture usually share profits equally,but share losses based on the percentage of contribution.
• B)Courts frequently apply sole proprietorship law to joint ventures.
• C)Participants in a joint venture usually share losses equally,but share profits based on the percentage of contribution.
• D)The joint venture is not automatically terminated when one of the members dies.
• E)A joint venture requires the filing of a formal agreement with the state.

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Definitions:

Last Dollar Spent

The concept of allocating resources until the marginal utility of expenditure on each good or service is equal, maximizing utility.

Labor Productivity

A measure of the amount of goods and services produced by one hour of labor.

Capital-Intensive

A business process or industry that requires large amounts of capital investment in comparison to labor.

Average Product

The output per unit of a given input, typically labor, calculated by dividing total product by the quantity of that input.