Which of the following statements holds true for a nonentity joint venture?
A)In a nonentity joint venture, the partner with the smaller capital investment loses control over the joint venture after a period of two months.
B)In a nonentity joint venture, each of the partners contributes capital and resources in exchange for an equity stake and share in any resulting profits.
C)In a nonentity joint venture, the control of the joint venture is in the hands of the party which makes the larger capital investment.
D)In a nonentity joint venture, there is no contribution of capital to form a new entity.
E)In a nonentity joint venture the benefit gained is in the form of collective profits rather than individual profits.

Question

Quizplus · Accepted Answer

In a nonentity joint venture, there is no formation of a new entity, and typically, no capital is contributed to form a separate entity.

Which of the Following Statements Holds True for a Nonentity