What distinguishes a joint venture from other types of strategic alliance is that in a joint venture:
A)The partners hold equity stakes in one another
B)The partners combine their top management teams
C)The partners create a new company which they jointly own
D)The partners are from different countries.

Question

Quizplus · Accepted Answer

A joint venture involves the creation of a new company that is jointly owned by the partners. This distinguishes it from other types of strategic alliances, such as licensing agreements or franchising agreements, where the partners do not create a new legal entity together. Holding equity stakes in one another (A) is not necessarily unique to joint ventures, as this can also occur in mergers and acquisitions. Combining top management teams (B) may happen but is not required for a joint venture. The partners being from different countries (D) is also not a distinguishing factor as a joint venture could involve partners from the same country.

What Distinguishes a Joint Venture from Other Types of Strategic