Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · Business Collaborations

Three Indian construction firms agree to jointly bid for a single highway project through a written agreement that shares profits and losses, without forming any new company or partnership firm for the long term. This is best described as:

It is a project-specific contractual joint venture. The firms cooperate for one defined project under an agreement sharing profits and losses, while each continues as a separate business. No merger, conversion or foreign liaison office is involved.

  1. AA project-specific contractual joint ventureCorrect
  2. BA merger under the Companies Act
  3. CA conversion of a company into an LLP
  4. DA liaison office of a foreign company

Explanation

Firms that combine resources for one project under a contract, sharing profits and losses, form a contractual (project-based) joint venture. No merger happens because each firm keeps its separate existence. Conversion and liaison offices are unrelated concepts.

Did you get it right without looking?

One question tells you little. A timed set on Business Collaborations shows your real accuracy, how long you take and where you lose marks.

Practise Business CollaborationsFree diagnostic mock

More Business Collaborations questions