Asked by Cianna Rodriguez on May 14, 2024
Verified
Oil Inc. and Petro Corporation form a joint venture to design and test petroleum storage facilities and equipment. When a dispute arises, Oil files a suit against Petro. The court is most likely to apply the same principles to this joint venture as it applies to
A) sole proprietorships.
B) limited liability companies.
C) corporations.
D) partnerships.
Joint Venture
A business arrangement in which two or more parties agree to combine their resources for accomplishing a specific task or project.
Principles Application
The act of applying fundamental truths or propositions that serve as the foundation for a system of belief or behavior.
Partnerships
An official business operation conducted by two or more people, with a shared management system and profit allocation.
- Comprehend the basic concepts of joint ventures and their administration, functioning, and dissolving processes.
Verified Answer
AH
Alexa HaightMay 16, 2024
Final Answer :
D
Explanation :
Joint ventures are treated similarly to partnerships in legal contexts, where the parties involved share profits, losses, and management responsibilities. Therefore, when disputes arise within a joint venture, courts typically apply principles similar to those used for partnerships.
Learning Objectives
- Comprehend the basic concepts of joint ventures and their administration, functioning, and dissolving processes.