1. Which of the following concerning the distinction between joint operations and joint ventures is correct?

In a joint venture, the investor has rights to the net assets of the arrangement; in a joint operation, the investor has rights and obligations related to the specific assets and liabilities of the arrangement.

A joint operation is always an unincorporated business; a joint venture is always an incorporated business.

In a joint operation, all investors must share control; in a joint venture, investors holding a majority of voting rights may share control.