The contractually agreed sharing of control over an economic entity is known as:
A) significant influence;
B) significant control;
C) joint control;
D) joint venture.

Question

Quizplus · Accepted Answer

Joint control refers to the sharing of control over an economic entity, where the parties involved have the right to participate in the decision-making process that ultimately determines the strategic direction and financial policies of the entity. Joint control is often formalized through a contractual agreement that specifies the respective rights and obligations of the parties involved, rather than through the acquisition of a controlling interest in the entity, as in the case of significant influence or significant control. A joint venture is a specific type of joint control arrangement that involves the creation of a new entity for a specific purpose or project.

The Contractually Agreed Sharing of Control Over an Economic Entity