1. A joint venture would not be organized as a(an): (a) Corporation (b) Proprietorship (c) Partnership (d) Undivided interest 2. Corporate joint ventures should be accounted for by the equity method, provided that the joint venturer: (a) Cannot exercise significant influence over the joint venture (b) Can participate in the overall management of the venture (c) Owns more than 50% of the joint venture (d) All of the above 3. An investor in a corporate joint venture would be least likely to: (a) Be active in the management of the venture (b) Have an ability to exercise significant influence (c) Consent to each significant venture decision (d) Hold title to a pro rata share of joint venture assets 4. Investors account for investments in corporate joint ventures under the equity method if their individual ownership percentages are at least: (a) 10% (b) 20% (c) 50% (d) None of the above 5. Far, Get, and Hog Corporations own 60%, 25%, and 15%, respectively, of the common stock of Pod Corporation, a joint venture that they organized for wholesaling fruits. Which of the corporations should report their joint venture interests under the equity method? (a) Far, Get, and Hog (b) Far and Get (c) Get and Hog (d) Far and Hog
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