The contractually agreed sharing of control over an economic activity is referred to as:
A)dominant control
B)joint control
C)shared control
D)none of the above

Question

Quizplus · Accepted Answer

Joint control is the contractual agreement between parties to share decision-making power over an economic activity, such as a joint venture. It involves the power to direct the relevant activities of the joint arrangement, and hence is distinct from entities that participate in joint arrangements but do not have joint control. Dominant control implies one party has the power to direct the activities of the arrangement unilaterally, while shared control refers to parties exercising joint control with no one party being dominant.

The Contractually Agreed Sharing of Control Over an Economic Activity