Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. They enter into a strategic alliance in which they create and own a legally independent company. The new company is created from resources and assets contributed by the parent firms. Revenues, expenses, and profits are equally shared by both firms. Which of the following strategic alliances is adopted by Borpon and Biocolog?

Question

Quizplus · Accepted Answer

Borpon and Biocolog created a legally independent company by contributing their resources and assets, and share revenues, expenses, and profits equally. This type of alliance is known as a joint venture.