The essential element that would distinguish a business undertaking as a partnership and NOT a joint venture operation would be:
A) the business undertaking makes a profit in the year.
B) there is no joint control agreement so that the undertaking is neither a joint venture entity nor a joint venture operation.
C) the business activity is an undertaking formed by the investors with the intention of making a profit.
D) none of the above.

Question

Quizplus · Accepted Answer

A partnership is a business structure in which two or more individuals work together to carry on a business with a view to making a profit. Joint control agreement is a distinguishing factor between a joint venture and a partnership. In a joint venture, the parties involved have joint control over the operation, while in a partnership, the control may be shared differently. Therefore, the absence of a joint control agreement would make the undertaking a partnership rather than a joint venture operation.

The Essential Element That Would Distinguish a Business Undertaking as a Partnership