Question

Which of these are not relevant to a joint venture?

• A. Temporary partnership
• B. Co-venturer
• C. Master-servant relationship
• D. Sharing profit and loss of joint venture

Answer 1

Answer: (C)

Master-servant relationship

• A joint venture is a temporary partnership of two firms or entities to ahieve a common goal such as take up a project, effect aquisitions etc.
• The partners in a joint venture are known as co-venturers.
• There is no master- servant relationship in a joint venture. It is governed by the terms of the agreement between the co-venturers as they share the profits in the agreed profit ratio.
• As mentioned earlier, the co-venturers share the profit and loss of joint venture in the agreed profit ratio or in any other way which may be decided beforehand in the terms of the agreement.