Florida Broker Practice Exam

What is a temporary form of business arrangement where two or more parties work together on a single transaction?

1. Cooperative association

2. Joint venture

3. Trade name

4. Unincorporated association

The correct answer is: Joint venture

A joint venture is indeed a temporary form of business arrangement where two or more parties collaborate for a specific purpose or project, typically involving a single transaction. This type of arrangement allows entities to pool their resources, expertise, and capital to achieve a common goal while sharing the risks and rewards associated with that particular endeavor. Joint ventures are distinct because they are limited in scope and time, often dissolving once the project is completed or the objective is achieved. They can be beneficial for parties looking to enter new markets, launch products, or leverage shared technology without forming a long-term partnership or corporation. Other forms mentioned, such as a cooperative association, trade name, and unincorporated association, do not specifically refer to a temporary arrangement for a single transaction. A cooperative association focuses on the collective benefits to members, a trade name refers to a branding or marketing name, and an unincorporated association is a group of individuals with a common purpose but does not specify the nature of transactions or temporary arrangements. Thus, "joint venture" is the most appropriate choice in this context.