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In the context of partnerships, what does the term 'joint venture' imply?
In the context of partnerships, what does the term 'joint venture' imply?
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Q1
In the context of partnerships, what does the term 'joint venture' imply?
A permanent partnership between two firms
A temporary partnership for a specific project
A partnership that involves sharing of profits only
A partnership that requires equal investment from all partners
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A joint venture is typically a temporary partnership formed for a specific project or purpose.
Questions & Step-by-step Solutions
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Q
Q: In the context of partnerships, what does the term 'joint venture' imply?
Solution:
A joint venture is typically a temporary partnership formed for a specific project or purpose.
Steps: 5
Show Steps
Step 1: Understand that a joint venture is a type of partnership.
Step 2: Know that it is usually formed by two or more parties.
Step 3: Recognize that the purpose of a joint venture is to work together on a specific project.
Step 4: Remember that joint ventures are often temporary and last only for the duration of the project.
Step 5: Realize that each party in a joint venture shares resources, risks, and profits related to the project.
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