Opep Corp. received a new building project that had very short turnover and very high resource cost. The company decided to ask Imog Corp., another builder, to aid them in this project, and the two companies together formed a third company by combining their resources. This third company was formed for the duration of the project and received equal credit after completion. In this scenario, Opep Corp. and Imog Corp. are forming a _____.
A) joint venture
B) global new venture
C) multinational franchise
D) wholly owned affiliate

Question

Quizplus · Accepted Answer

A joint venture is a partnership between two or more companies that combines their resources and expertise to achieve a specific goal or complete a specific project. In this scenario, Opep Corp. and Imog Corp. are forming a joint venture to undertake the new building project. The third company they form will likely be dissolved once the project is complete, and each parent company will receive equal credit for their contribution to the project.

Opep Corp Received a New Building Project That Had Very Short