Two licensees each have a monetary bid limit of $50,000 and want to form a joint venture to bid for a job that is $1,000,000. What statement is true regarding this situation?

In the context of joint ventures for bidding on contracts, it is essential to understand how the licensing requirements apply. When two licensees each have a monetary bid limit of $50,000, their combined capacity does not automatically increase just because they are working together. The law stipulates that for this type of joint venture, they must establish a separate entity and obtain the appropriate licensing for that entity.

The requirement for securing a separate joint venture license from the licensing board ensures that the combined operation meets all legal and financial standards necessary for a bid of this magnitude. This process helps maintain compliance with state laws and protects both the contractors and consumers involved in the project.

The other options do not align with the legal requirements for joint ventures in Nevada. For instance, bidding immediately or under one license would not comply with the stipulations for a project of $1,000,000, given their individual limitations. Furthermore, merely forming a joint venture does not negate the necessity for a separate license; it must be formalized with the appropriate board authority before proceeding with a bid of that size.