Starshine Inc., a toy manufacturing company, has collaborated with Capsidy Corp., a book publishing company, to come up with a third company, Starcap Inc., which manufactures educational toys and games for preschool children. In this context, Starcap is a(n) _____.

Question

Starshine Inc., a toy manufacturing company, has collaborated with Capsidy Corp., a book publishing company, to come up with a third company, Starcap Inc., which manufactures educational toys and games for preschool children. In this context, Starcap is a(n) _____. ​

Quizplus · Accepted Answer

Starcap Inc. is a joint venture between Starshine Inc. and Capsidy Corp. A joint venture is a business agreement in which two or more companies join forces to undertake a specific project, with each company sharing the risks and rewards of the venture. Therefore, D is the correct answer.