At its simplest level, a joint venture may be thought of as:
A) a merger of two companies.
B) an acquisition of a smaller company by a larger company.
C) a form of strategic outsourcing.
D) a sign of weakness on the part of one of the companies.
E) pooling of resources by two or more firms to create new business.

Question

Quizplus · Accepted Answer

A joint venture involves two or more firms pooling their resources in order to create a new business, which allows each firm to benefit from the other's expertise and resources. It is not a merger, acquisition, or sign of weakness. While joint ventures can involve outsourcing, they are not necessarily a form of strategic outsourcing as they often involve collaboration and sharing of risk and rewards.

At Its Simplest Level, a Joint Venture May Be Thought