Which of the following would be considered to be a joint operation?
A)Two investors create a separate company which provides for joint control. The assets and liabilities of the company are the responsibility of the investors up to their ownership interest.
B)Two investors create a separate company which provides for joint control. The assets and liabilities of the company are the responsibility of the company.
C)Two investors create a company. Neither investor controls the individual assets or is obligated to pay for the liabilities and expenses of the separate company.
D)None of the above would be considered a joint operation.

Question

Quizplus · Accepted Answer

In a joint operation, the parties have rights to the assets and obligations for the liabilities of the arrangement. In option A, the investors have joint control and are responsible for the assets and liabilities up to their ownership interest, fitting the definition of a joint operation.

Which of the Following Would Be Considered to Be a Joint