Problem 1 Classify joint arrangements and explain your reasons.
Case 1 Companies A and B form a company, C, to tender for a public contract with a government to construct a motorway between two cities. A and B have joint control of the activities of C. A will construct three bridges needed to cross rivers on the route; B will construct all of the other elements of the motorway. A and B will each use their own equipment and employees in the construction activity. C enters into a contract with the government for delivery of the motorway. It also enters into a contract with A and B for performance of the government contract. A and B will invoice C for their respective shares of the total amount invoiced by C to the government.