Allured Architecture Inc.collaborated with Maze & Matiz Corp.to form a new architecture firm called AllureAmaze Inc.Both the firms had a significant equity stake in the new entity.This collaboration would most accurately be termed a(n)_____.
A) licensing project
B) joint venture
C) outsourcing maneuver
D) contract alliance

Question

Quizplus · Accepted Answer

A joint venture is a business agreement in which two or more firms agree to pool their resources and expertise for a specific project or goal. In this case, Allured Architecture Inc. and Maze & Matiz Corp. collaborated to form a new architecture firm, in which both firms have a significant equity stake. This aligns with the definition of a joint venture. A licensing project involves a firm licensing its intellectual property or products to another firm for a fee, which is not the case here. Outsourcing maneuver and contract alliance both do not fit the situation described in the scenario.