Upstart Corp. was formed when Bencanc Corp. and Torperd Corp. pooled their resources to work on a construction project for the government. The project had a short turnaround time along with intensive requirements that could not be fulfilled by one company alone. In this context, Upstart Corp. is a _____.
A) joint venture
B) global new venture
C) multinational franchise
D) wholly owned affiliate

Question

Quizplus · Accepted Answer

Upstart Corp. was formed when two companies pooled their resources for a specific project, indicating that this is a joint venture. A global new venture involves a new business that operates globally from its inception, while a multinational franchise involves a company that grants the right to use its brand and business model to other entities in different countries. A wholly owned affiliate would mean one company had complete ownership of another company, which is not the case in this scenario.