A focal firm that creates and owns a new legal entity through equity investment or pooling of assets is called a(n) ________.

Question

Quizplus · Accepted Answer

A joint venture partner is a focal firm that creates and owns a new legal entity through equity investment or pooling of assets. The other options do not accurately describe this type of partnership. A project-based partner typically works on a specific project with the focal firm but does not create a separate legal entity. A build-own-transfer venture involves a company building a particular asset or facility and then transferring ownership to a government entity. A nonequity venture partner does not invest any capital but may provide other resources or expertise to a joint venture.

A Focal Firm That Creates and Owns a New Legal