A consumer electronics company and a telecommunications company establish a new company to jointly manufacture a new line of mobile phones. This is an example of a(n)
A)joint venture.
B)acquisition.
C)wholly owned subsidiary.
D)merger.
E)hostile takeover.

Question

Quizplus · Accepted Answer

A joint venture is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, such as manufacturing a new line of mobile phones, while remaining separate entities.

A Consumer Electronics Company and a Telecommunications Company Establish a New