Which term refers to the contractual agreement of shared control and decision-making authority in a business arrangement?

The term that refers to the contractual agreement of shared control and decision-making authority in a business arrangement is "joint control." This concept is prominently used in the context of joint ventures and similar business collaborations where two or more parties share control over an entity or an arrangement. Joint control signifies that decisions about relevant activities require the consent of all parties involved, ensuring that no single party has unilateral authority. This shared governance structure is crucial as it aligns with the principles of collaboration and mutual agreement in business partnerships.

Options such as a partnership agreement typically refer to the specific legal document outlining the terms of a partnership, which does involve collaboration but doesn’t inherently represent a structure of shared control like joint control does. Similarly, cooperative control is not a standard term used in financial accounting or business arrangements, and unified control implies a single entity has full decision-making power, which does not reflect the shared nature essential to joint control. Thus, understanding this concept is vital in recognizing the nuances of shared governance in business entities.