A form of business combination in which two (unaffiliated) companies contribute financial and/or physical assets, as well as personnel, to a new company to engage in some economic activity is known as a ____.
A) joint venture
B) conglomerate merger
C) merger
D) consolidation

Question

Quizplus · Accepted Answer

A joint venture is a form of business combination- a strategy that two or more companies undertake to achieve strategic goals. In a joint venture, two unaffiliated companies create a new venture by contributing assets, personnel, and financial resources to engage in some economic activity, while retaining their separate identities. Joint ventures are typically created for short-term projects or partnerships, such as research and development, exploration and production, marketing, or distribution.

A Form of Business Combination in Which Two (Unaffiliated) Companies