Florida Broker Practice Exam

A group of real estate brokers working together on a transaction would be classified as a __________.

1. Business trust

2. Corporation sole

3. Joint venture

4. Cooperative association

The correct answer is: Joint venture

A group of real estate brokers working together on a transaction would be classified as a joint venture because this term is used to describe a temporary partnership formed by two or more parties for a specific project or business activity. In this context, the brokers are collaboratively working toward a common goal—completing a real estate transaction—which aligns perfectly with the definition of a joint venture. Joint ventures are characterized by their cooperation and shared resources, where each party involved may contribute different strengths or assets to achieve the desired outcome. This cooperative model allows the brokers to leverage their individual expertise and networks, maximizing their chances of success in the transaction. In contrast, a business trust typically involves property management for the benefit of the beneficiaries, while a corporation sole refers to a legal entity created for a specific individual with ecclesiastical authority, which is not relevant here. Additionally, a cooperative association generally refers to a business entity that is owned and operated by a group of individuals for their mutual benefit, which is broader than the specific nature of the collaboration among brokers in this scenario.