A ________ is the joining of two firms in order to form a third company in which the equity is shared.
A) majority interest
B) joint venture
C) product extension merger
D) minority interest

Question

A ________ is the joining of two firms in order to form a third company in which the equity is shared. 
A) majority interest
B) joint venture
C) product extension merger
D) minority interest

Quizplus · Accepted Answer

A joint venture is an agreement between two or more companies to work together and form a new entity, sharing ownership, profits, and risks. A product extension merger involves two companies in the same industry merging to expand their product lines. Majority interest and minority interest refer to ownership shares in a company, and are not relevant to the formation of a new entity through a merger.

A ________ Is the Joining of Two Firms in Order