In a(n) _____, two or more firms both put some resources into a new, separate entity.
A) equity joint venture
B) subcontract
C) licensing arrangement
D) consortia

Question

Quizplus · Accepted Answer

An equity joint venture is a type of collaboration where two or more firms contribute resources to create a new entity, which is jointly owned by all of them. The ownership share is usually proportional to the resources contributed by each partner. This arrangement is common in industries where complex and costly projects require pooling of resources and expertise, such as in the development of new technologies, infrastructure projects, or international market entry. Subcontracting refers to hiring another firm to perform a specific task or component of a project. Licensing involves giving another firm the right to use a company's intellectual property, such as patents or software. Consortia refers to a group of independent companies or organizations that work together on a specific project or initiative.

In A(n) _____, Two or More Firms Both Put Some