If Procter & Gamble, a North American leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a line of ecologically friendly laundry detergent, what would the resulting partnership be?
A) a corporation
B) a joint venture
C) a licensing agreement
D) an economic community

Question

Quizplus · Accepted Answer

The resulting partnership between Procter & Gamble and Reckitt Benckiser would be a joint venture, as they are forming a new entity to develop and distribute a product together. A corporation is a separate legal entity formed by shareholders, but in this case there is no indication that this is the structure being used. A licensing agreement would involve one company granting another company the right to use its technology or intellectual property, but this does not seem to be the case here. An economic community is a group of countries that agree to cooperate on trade and other economic issues, which does not apply to this scenario. Therefore, the best choice is B.

If Procter & Gamble, a North American Leader in Household