Two locomotive manufacturing companies have become partners in a special project to build a final assembly plant for their engines in China. The two companies will share ownership and risk in the investment. However, each company will retain its original business identity. Which of the following business forms does this scenario exemplify?

Question

Quizplus · Accepted Answer

The scenario described exemplifies a joint venture, where two companies come together to form a new business entity for a specific project or purpose, while retaining their original identities. Both companies share ownership and risk in the investment made for the final assembly plant in China.

Two Locomotive Manufacturing Companies Have Become Partners in a Special