Capital Radio PLC, the United Kingdom's biggest commercial radio company, announced in 2002 that it would cooperate with Walt Disney Co. to create a radio network for children under the age of 16. The company will broadcast to a potential audience of 25 million under the name Capital Disney. This new radio network will be created as the result of which of the following arrangements?

Question

Quizplus · Accepted Answer

The best choice is a joint venture, which involves the cooperation of two or more companies to create a new business entity. This is evident in the announcement that Capital Radio PLC and Walt Disney Co. will work together to create the Capital Disney radio network. It is not an international partnership, as both companies are based in the United Kingdom, nor is it a joint cooperative or an oligopoly, as these terms do not accurately describe the arrangement between the two companies.

Capital Radio PLC, the United Kingdom's Biggest Commercial Radio Company