Which of the Following Statements Is True of Joint Ventures

question 71

Multiple Choice

Which of the following statements is true of joint ventures?

• A) It requires both partners involved to allocate revenues and expenses equally between them.
• B) It is not considered a separate entity from any of the partners that own it.
• C) It does not require its partners to lose more than what each partner has invested in it.
• D) It is never taxed as a partnership.

---

Definitions:

National Quality Award

An accolade given to companies that exhibit outstanding quality management and operational excellence.

Malcolm Baldrige Foundation

A foundation that supports the Malcolm Baldrige National Quality Award, which recognizes U.S. organizations for their achievements in quality and performance.

U.S. Congress

The bicameral legislative body of the federal government of the United States, consisting of two houses: the Senate and the House of Representatives.

Period Costs

Expenses that are incurred on the income statement in the period in which they are incurred, such as selling, general, and administrative expenses, which are not directly tied to the production of goods.