Company A and B agree to engage in a joint venture. Which of the following statements pertaining to joint ventures is correct?
A) Both parties to a joint venture must contribute an equal amount of resources to the venture.
B) The party contributing the most resources to the venture has control over the venture.
C) Both parties have joint control over the venture.
D)All joint ventures have a stated economic useful life.

Question

Quizplus · Accepted Answer

In a joint venture, both parties have joint control over the venture, meaning decisions are made jointly by both parties involved. The amount of resources each party contributes can vary, and the party contributing the most resources does not necessarily have control over the venture. Joint ventures may or may not have a stated economic useful life, depending on the specific agreement between the parties involved.

Company a and B Agree to Engage in a Joint