Builders Inc.,Real Estate Broker,Inc.,and Developers,Inc.form a business to purchase,develop,and build a shopping mall in Temecula,California.According to their agreement,the business will operate only until the mall is built,then the mall will be sold to Downtown Mall,Inc.,an owner and operator of shopping malls across the United States.Once the sale is complete,their business will be dissolved.What type of business have they formed?
A) Syndicate
B) Corporation via merger
C) Limited-liability company
D) Joint venture

Question

Quizplus · Accepted Answer

The three companies have formed a joint venture to purchase, develop, and build the shopping mall in Temecula, California. Their business will operate only until the mall is built, then the mall will be sold to Downtown Mall, Inc. and their joint venture will be dissolved. This type of business allows the companies to combine their resources, skills, and expertise to achieve a common goal without forming a new entity.