The development of new drugs is very expensive. For this reason Genentech, a large biotechnical company, has entered into a business arrangement with Swiss-owned Roche to develop a vaccine for tuberculosis. When the vaccine is developed or when the two biotechnical companies determine the vaccine cannot be developed using their current methodology, this relationship will dissolve. What type of relationship is it?
A) joint venture
B) general partnership
C) cooperative
D) limited-time partnership

Question

Quizplus · Accepted Answer

This is a joint venture, where two or more parties come together for a specific project or for a set period of time, sharing resources, risks, and rewards. In this case, Genentech and Roche are collaborating to develop a tuberculosis vaccine, with plans to dissolve the partnership upon completion or failure of the project.

The Development of New Drugs Is Very Expensive