Two firms invest capital into a third entity with each firm holding a fifty percent share of the net assets; therefore control of the entity is split evenly. This is a joint venture. (False - a contractual agreement is required).

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The Answer of Two firms invest capital into a third entity with each firm holding a fifty percent share of the net assets; therefore control of the entity is split evenly. This is a joint venture. (False - a contractual agreement is required).

Two Firms Invest Capital into a Third Entity with Each