Which of the following statements is true of joint ventures?

Question

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Joint ventures are partnerships between two or more parties for a specific business purpose. In a joint venture, partners agree to share profits and losses in proportion to their investment. This means that each partner is only liable for losses up to the amount of their investment, and they cannot lose more than this. Option A is incorrect because partners can agree to allocate revenues and expenses based on their investment ratio or any other agreed-upon terms. Option B is incorrect because a joint venture is a separate legal entity from the partners that own it. Option D is incorrect because joint ventures are often taxed as partnerships, but this may vary based on the jurisdiction and structure of the partnership.

Which of the Following Statements Is True of Joint Ventures