Question

A contractual joint venture is ________.

• A. a contractual arrangement between two or more companies in which certain assets and liabilities are shared for a specific purpose and time
• B. a contractual arrangement between private company and public company
• C. both (A) and (B)
• D. none of these

Answer 1

The correct option is A a contractual arrangement between two or more companies in which certain assets and liabilities are shared for a specific purpose and time

The contractual joint venture is a different legal arrangement from the incorporated or equity joint venture in which two or more parties set up a separate legal entity to act as the vehicle for carrying out the project.See also joint venture; equity joint venture. Model of International Joint Venture Contract.