One Way to Avoid the Failure of a Joint Venture

question 125

True/False

One way to avoid the failure of a joint venture is to not use any kind of an agreement that details what to do if the business fails,as this just predestines the joint venture's failure.

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Definitions:

AASB 128/IAS 28

A standard specifying the accounting treatment for investments in associates and joint ventures, focusing on the application of the equity method.

Managerial Personnel

Employees who are responsible for making key decisions and overseeing the operations of a company, including executives and departmental managers.

Asset Revaluation Surplus

The increase in value of an asset, reflected on a company's financial statements, after it has been revalued to its current market value.