An American company has just entered into an agreement with a German firm to create a separate legal entity. This new firm will be allowed to conduct business and actively compete in various European Union markets. This is a joint venture.

Question

Quizplus · Accepted Answer

A joint venture is when two or more parties, often from different countries, agree to pool their resources for the purpose of accomplishing a specific task, such as creating a new business entity, which is exactly what is described. This new entity operates independently and can conduct business, including competing in various markets like those in the European Union.

An American Company Has Just Entered into an Agreement with a German