Ask Question
BusinessBusiness
5 December, 12:45

Creative Concepts Co. and Retail Investment Inc., form a joint venture to purchase and sell high-end real estate to foreign buyers. Creative Concepts contributes $400,000 in capital, and Retail Investment contributes $600,000 in capital. The first year resulted in $2,000,000 in profits. Unless otherwise agreed, joint venturers: a. retain profits with the joint venture until the joint venture is dissolved by at least one member. b. share profits and losses equally. c. share profits and losses according to the state's Uniform Joint Venture Act. d. share profits and losses by proportion to the amount invested

+5
Answers (1)
  1. 5 December, 14:27
    0
    share profits and losses equally.

    Explanation:

    Joint venture is defined as a contractual agreement between two or more parties to pool their resources together to achieve a common goal. There is no transfer of ownership on the agreement.

    The profits are usually shared equally regardless of the capital contribution by each party.

    However if there was an agreement on how profit was to be shared it will result in unequal sharing of profit.

    So despite difference in capital contribution between Creative Concepts and Retail Investment, the profit realised will be shared equally.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Creative Concepts Co. and Retail Investment Inc., form a joint venture to purchase and sell high-end real estate to foreign buyers. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most recent year. There were 27 comma 000 purses sold in that year. Selected financial information about the purse line follows.
Answers (1)
What are the differences between tangible and intangible resources? Which category of resources is more valuable to the firm?
Answers (2)
Why does efficiency drive the price down in a purely competitive market?
Answers (1)
PA2. LO 3.1A company manufactures and sells racing bicycles to specialty retailers. The Bomber model sells for $450 and has per-unit variable costs of $200 associated with its production. The company has fixed expenses of $40,000 per month.
Answers (1)
Winter Company has no beginning and ending inventories, and reports the following data about its only product: Direct materials used $200,000 Direct labor $80,000 Fixed indirect manufacturing $100,000 Fixed selling and administrative $300,000
Answers (2)
New Questions in Business
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 99,000 shares of $14 par common stock. 8,000 shares of $80 par, 4 percent, noncumulative preferred stock.
Answers (1)
Consumption, investment, and government spending and tax revenues are given by the following information: C = 100 + 0.
Answers (1)
Prior to liquidating their partnership, Pepper and Russo had capital accounts of $30,000 and $119,000, respectively. The partnership assets were sold for $55,000. The partnership had no liabilities. Pepper and Russo share income and losses equally.
Answers (1)
Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H.
Answers (1)
Taxable Earnings column on the payroll Register records? what? a) what wages will be taxed b) actual tax c) estimated tax d) all of these e) None of these
Answers (1)
Home » Business » Creative Concepts Co. and Retail Investment Inc., form a joint venture to purchase and sell high-end real estate to foreign buyers. Creative Concepts contributes $400,000 in capital, and Retail Investment contributes $600,000 in capital.
Sign Up Forgot Password?