What is the term for a strategic alliance in which two existing companies collaborate to form a third,independent company?
A)joint venture
B)franchise
C)wholly owned affiliate
D)global new venture

Question

What is the term for a strategic alliance in which two existing companies collaborate to form a third,independent company?
A)joint venture  
B)franchise  
C)wholly owned affiliate  
D)global new venture

Quizplus · Accepted Answer

A joint venture is a strategic alliance between two or more companies to create a new entity to pursue a specific objective. This new entity is independent of the two original companies and has its own management, staff, and assets. It allows both companies to leverage their strengths, share resources, and reduce risks and costs.

What Is the Term for a Strategic Alliance in Which