An agreement between firms to create a separate, co-owned entity established to pursue a joint goal is called a:
A) Consolidation.
B) Strategic alliance.
C) Joint venture.
D) Merged alliance.
E) Takeover project.

Question

Quizplus · Accepted Answer

A joint venture is a strategic agreement where two or more parties agree to create a new entity by both contributing equity and sharing revenues, expenses, and control of the company, which is specifically established to pursue a shared business objective.

An Agreement Between Firms to Create a Separate, Co-Owned Entity