A joint venture allows a company to share the risks and costs associated with establishing a new business unit with another company.

Question

Quizplus · Accepted Answer

A joint venture is a business arrangement in which two or more companies come together to share resources, expertise, and risk to establish a new business unit. By pooling their resources and sharing costs, companies can mitigate the risks associated with starting a new business, such as market or financial risks. Therefore, the statement is true.

A Joint Venture Allows a Company to Share the Risks