Which of the Following Describes a Joint Venture

question 124

Multiple Choice

Which of the following describes a joint venture?

• A)Entities with limited lives that a company creates to achieve a specific objective.
• B)An association of two or more entities for the purpose of achieving a specific goal.
• C)Corporations that U.S.tax laws treat as partnerships,and they do not pay income taxes.
• D)A special type of partnership that confines the limited partner's potential loss to the amount of his or her investment.

Understand the implications of the law of increasing cost and factor suitability in resource allocation.

Recognize the role of the consumer in the American economy.

Understand the concepts of efficiency and maximum possible output in an economy.

Learn about the shift of resources between types of goods to achieve economic growth.

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Definitions:

Direct Write-off Method

An accounting method where bad debts are charged against income at the time they are determined to be uncollectible, rather than being estimated and accounted for in advance.

Allowance for Doubtful Accounts

An estimation of the amount of credit sales that are expected not to be collected, representing a reserve for potential bad debts.

Notes Receivable

Legally enforceable claims for money owed to a business by its customers or clients, typically evidenced by a written promise to pay.

Formal Instruments of Credit

Legal documents that acknowledge debt and specify terms of repayment, such as notes payable or bonds.