Most courts hold that joint ventures operate under the same legal principles as partnerships except: ______.
A) a joint venture shares profits and losses.
B) a joint venture involves capital contributions from all the owners.
C) a joint venture does not require a written agreement.
D) a joint venture typically involves a single limited purpose.

Question

Quizplus · Accepted Answer

The distinguishing factor of a joint venture is that it involves a single limited purpose or objective, while partnerships are generally ongoing business relationships. Joint ventures may or may not involve sharing of profits and losses and capital contributions, and may require a written agreement depending on the jurisdiction. However, they still operate under the same legal principles as partnerships in most respects.

Most Courts Hold That Joint Ventures Operate Under the Same