What type of relationship prevents participants of a joint venture from binding one another to new transactions?

The correct choice signifies that a temporary relationship in a joint venture allows for flexibility between participants, meaning they do not have the authority to bind one another to new transactions without mutual consent or agreement. This characteristic is crucial in joint ventures, where partners often come together for a specific project or purpose but retain independence in other matters.

In a temporary relationship, participants can collaborate on a defined task or venture while retaining the ability to make independent decisions in their other business dealings. This structure helps prevent potential conflicts and misunderstandings regarding responsibility and accountability in commitments outside the scope of the joint venture.

With this understanding, relationships that are permanent, long-term, or irrevocable would imply a deeper level of commitment and authority among the parties involved, which is contrary to the nature of a temporary relationship in a joint venture context. Such connections would typically allow for binding decisions to be made on behalf of all participants, which undermines the need for individual agency within the group.