Nature and Forms of Business Organizations
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Questions and Answers

What are the key requirements for a joint venture to exist?

  • Mutual agreement, ownership of assets, and control over management
  • Complete control, absence of losses, and tax exemptions
  • Independent decision-making, profit maximization, and risk avoidance
  • Community of interest, right to direct policy, and sharing in profit and losses (correct)

    • What governs the relationship between joint venture partners?

  • Government policies and economic conditions
  • Joint venture contract and partnership laws (correct)
  • Industry standards and market trends
  • Corporate bylaws and tax regulations

    • Why can't corporations form partnerships with each other?

  • Legal restrictions on corporate partnerships (correct)
  • Competitive reasons among corporations
  • Corporate structure incompatibility
  • Tax implications of corporate partnerships

    • What factors should be considered when deciding on the type of business organization for a joint venture?

    <p>Liability, tax treatment, control, capital raising, and establishment ease</p> Signup and view all the answers

    Why is ease of raising capital an important factor to consider in the type of business organization for a joint venture?

    <p>It affects the financial stability of the venture</p> Signup and view all the answers

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