At its simplest level, a joint venture may be thought of as:
A)a merger of two companies.
B)an acquisition of a smaller company by a larger company.
C)a form of strategic outsourcing.
D)a sign of weakness on the part of one of the companies.
E)pool of resources by two or more firms to create new business.

Question

Quizplus · Accepted Answer

A joint venture involves two or more firms pooling their resources to create a new business entity or pursue a specific project. It is not a merger or acquisition, but rather a collaboration between two or more companies. Joint ventures can be a form of strategic outsourcing in which firms combine their expertise or capabilities to achieve a common goal. It is not a sign of weakness, but rather a strategic move to share risks, costs, and expertise while achieving greater success in the marketplace.

At Its Simplest Level, a Joint Venture May Be Thought