Exom and Royshe are two oil and natural gas exploration and production companies. They created a new entity, CalEner, for oil exploration in California. The two parent companies remained separate. CalEner is an example of a _____.
A) tactical alliance
B) consortium
C) strategic association
D) cloud system
E) joint venture

Question

Quizplus · Accepted Answer

CalEner is a joint venture because it is a new entity created by Exom and Royshe for a specific business purpose, while the parent companies remain separate.

Exom and Royshe Are Two Oil and Natural Gas Exploration