A joint arrangement that is not structured as a separate entity is a(n)__________.
A)association.
B)joint operation.
C)consolidation.
D)passive investment.

Question

Quizplus · Accepted Answer

A joint operation is a joint arrangement in which the parties have direct control over the assets and obligations of the arrangement, rather than creating a separate entity. In a joint operation, the parties share the costs and risks of the arrangement and have an interest in the assets and liabilities. This is in contrast to a joint venture or partnership, which creates a separate legal entity. Association and consolidation are not applicable to this situation. Passive investment is also not applicable as it refers to the ownership of securities with no control over the investee's operations.

A Joint Arrangement That Is Not Structured as a Separate