What defines a joint arrangement?

A joint arrangement is characterized by joint control, where the parties involved have agreed to work together but do not individually control decisions alone. The correct answer identifies that what defines a joint arrangement is the requirement for unanimous consent when making decisions. This level of control and cooperation means that all parties must agree on key decisions, which is a crucial aspect of how joint arrangements function.

In a joint arrangement, each party has rights to the net assets of the arrangement and shares responsibilities and benefits according to their participation. The essence of joint control lies in the collaborative decision-making process, which contrasts with more unilateral arrangements where one party might dominate decisions or stake. Joint arrangements often manifest in joint ventures or partnerships, making this collective decision-making essential for their operation.

While majority control implies one entity makes decisions on behalf of the others, or unilateral decision-making indicates that one party can act independently, these do not align with the primary nature of joint arrangements where cooperation and mutual consent are key elements. Temporary partnerships, while they may involve some collaborative aspects, do not universally satisfy the criteria necessary to define a joint arrangement compared to the stipulations around joint control and decision-making.