Which of the following concerning the distinction between joint operations and joint ventures is correct?
A) In a joint operation, the investor has rights to the net assets of the arrangement; in a joint venture, the investor has rights and obligations related to the specific assets and liabilities of the arrangement.
B) In a joint venture, the investor has rights to the net assets of the arrangement; in a joint operation, the investor has rights and obligations related to the specific assets and liabilities of the arrangement.
C) A joint operation is always an unincorporated business; a joint venture is always an incorporated business.
D) In a joint operation, all investors must share control; in a joint venture, investors holding a majority of voting rights may share control.

Question

Quizplus · Accepted Answer

In a joint venture, the investor has rights to the net assets of the arrangement, which means they share in the output and results of the venture as a whole. In contrast, in a joint operation, the investor has rights and obligations related to the specific assets and liabilities of the arrangement, meaning they are involved in the operation's assets and liabilities directly.

Which of the Following Concerning the Distinction Between Joint Operations