A joint venture is different from a partnership in that the joint venture:
A)can be formed only by two individuals.
B)is formed for a specific purpose.
C)continues indefinitely.
D)requires that profits be shared equally.

Question

Quizplus · Accepted Answer

A joint venture is formed for a specific purpose, which may be a one-time project or a limited period of time. A partnership, on the other hand, is generally formed for an indefinite period of time with the intention of making a profit. Therefore, option B is the correct choice. Option A is incorrect since a joint venture can be formed by two or more individuals or entities. Option C is incorrect since joint ventures are typically formed for a specific purpose and do not continue indefinitely. Option D is incorrect since profits can be shared in any agreed-upon manner, and it does not have to be equal in a joint venture.

A Joint Venture Is Different from a Partnership in That