According to GAAP, What Is the Key Feature of a Joint

question 7

Multiple Choice

According to GAAP, what is the key feature of a joint arrangement?

• A) One venturer has a controlling interest in the joint arrangement.
• B) More than one venturer has a controlling interest in the joint arrangement.
• C) Joint control, namely, no one venturer can unilaterally control the venture regardless of the size of the equity contribution.
• D)The two largest equity contributors will have joint control over the venture.

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Definitions:

Closed Corporations

A type of corporation that is held by a few owners, does not offer its stocks for public sale, and is exempt from certain regulations.

Written Agreement

A legally binding document outlining terms, conditions, rights, and duties agreed upon by two or more parties.

Collective Ownership

A situation where assets or property are owned jointly by a group or community, typically managed and controlled democratically.

Public Ownership

Organization owned and operated by a unit or agency of government.