In particular type of a undertaking, there is a relationship betw… - Vidyadip

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In particular type of a undertaking, there is a relationship between two or more parties, a new jointly-owned entity is not created. There is just an agreement between the parties to work together. The enterprises do not share ownership of the business but exercise some elements of control in the relationship. In another type of undertaking a separate business entity, jointly owned by two or more parties, is formed in accordance with the agreement of the parties. The key operative factor in such case is joint ownership by two or more parties.

On the basis of the aforesaid information, answer the following questions:

(a) How will you classify the above stated undertaking as a form of special arrangement?

(b) Differentiate between the forms of undertaking identified in part (a).

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