Two or more companies will sometimes agree to join forces to pursue specific opportunities without actually merging their operations. What do we call this practice?

Question

Quizplus · Accepted Answer

A joint venture is a strategic alliance between two or more companies, where they agree to pool their resources and expertise to pursue a specific project or goal. It allows companies to share risks and costs while achieving mutual benefits, without the complexity and legal requirements of a full merger or acquisition. A collusive alliance implies unethical behavior, while an acquisition involves one company buying another. Limited venture is not a commonly used term in this context.

Two or More Companies Will Sometimes Agree to Join Forces