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  2. Topic
    Business
  3. Study Set
    International Financial Reporting Standards
  4. Exam
    Exam 30: Joint Arrangements
  5. Question
    Two Firms Invest Capital into a Third Entity with Each
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Two Firms Invest Capital into a Third Entity with Each

Question 3

Question 3

True/False

Two firms invest capital into a third entity with each firm holding a fifty percent share of the net assets; therefore control of the entity is split evenly. This is a joint venture. (False - a contractual agreement is required).

Correct Answer:

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