Question

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:

Answer 1

The profit and losses from the joint venture are shared equally

Step-by-step explanation:

The profit and losses from the joint venture are shared equally according to the proportion of capital invested in the organization. The reason is just like a partnership, the profits are distributed among the shareholders as a percentage of thier shareholdings and joint venture is the partnership of companies which jointly invest in an organization.