How can competing firms collaborate on a new business without losing control of their existing firm?

Question

Quizplus · Accepted Answer

Establishing a joint venture allows the competing firms to work together on a new business venture while still maintaining control over their existing firms. A joint venture is a separate legal entity that is created specifically for the purpose of carrying out a particular business activity or project. The participating firms each own a share of the joint venture and can collaborate on decision-making and management, while still retaining control over their own businesses.

How Can Competing Firms Collaborate on a New Business Without