Genetech, a biotechnology firm engaging in the new field of genetic engineering, has asked your advice about remaining independent and temporarily gaining access to the marketing and manufacturing expertise it lacks from another firm. You would suggest
A) forming a limited-liability company.
B) forming a joint venture.
C) forming an S-corporation.
D) merging with a company with the necessary expertise.
E) starting a cooperative.

Question

Quizplus · Accepted Answer

Forming a joint venture with another firm would allow Genetech to gain access to the marketing and manufacturing expertise it lacks, while still maintaining its independence. This option would be a temporary solution, as the joint venture would be for a specific project or time period. It also allows for shared risk and costs between the two firms. This would be a better option than merging with another company or forming a limited-liability company, as these options would involve giving up some control or ownership of the company. Starting a cooperative and forming an S-corporation may also not be the best options, as they may not provide the necessary expertise that Genetech requires.

Genetech, a Biotechnology Firm Engaging in the New Field of Genetic