Medici and Athena are companies that manufacture medical equipment. The two companies have partnered for a unique project to create a specialized X-ray machine with the latest and the most expensive technology available. Medici and Athena will share their knowledge and resources as well as ownership and risk in the investment. However, each company will retain its own business identity. Which of the following business forms have Medici and Athena adopted for the project?

Question

Quizplus · Accepted Answer

Medici and Athena have adopted a joint venture for the project as they are sharing their knowledge and resources as well as ownership and risk in the investment while retaining their own business identities. A merger involves the combination of two companies into a single entity, while a licensing agreement is a type of legal contract that allows one party to use another party's intellectual property for a fee. Piggybacking is not a recognized business form.

Medici and Athena Are Companies That Manufacture Medical Equipment