Which of the following is not a characteristic of a joint venture corporation?
A) Profits and losses can be divided between the partners disproportionately to their ownership shares.
B) New investors can become part of the JV corporation without having to dissolve the original JV corporate structure.
C) The JV corporation can be used to acquire other firms.
D) Investors' liability is limited to the extent of their investment.
E) The JV corporation may be subject to double taxation.

Question

Quizplus · Accepted Answer

One of the characteristics of a joint venture corporation is that profits and losses are typically divided proportionately to the ownership shares of the partners. Option A states that profits and losses can be divided disproportionally, which is not a typical characteristic of a JV corporation.

Which of the Following Is Not a Characteristic of a Joint