Which of the following statements regarding partnerships and joint ventures is correct?
A)Joint ventures are taxable entities for both income tax and GST/HST purposes.
B)Both partners and joint venturers have the ability to contractually bind other partners and joint venturers.
C)For both partnerships and joint ventures, all participants must use the same CCA figure for the current year.
D)Partners share the profit of the partnership and joint venturers share the gross revenues of the joint venture.

Question

Quizplus · Accepted Answer

Partnerships and joint ventures share profits and gross revenues, respectively. Joint ventures are not taxable entities, while partnerships are pass-through entities for tax purposes. Both partners and joint venturers can contractually bind the entity, but CCA figures are determined separately for each participant.

Which of the Following Statements Regarding Partnerships and Joint Ventures