An entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization is called a ________.
A) trade association
B) network
C) joint venture
D) consortia
E) strategic alliance

Question

Quizplus · Accepted Answer

A joint venture is created when two or more firms pool their resources to create a separate, jointly-owned organization. This allows the firms to combine their strengths and share the risks and costs of a new venture. A trade association is an organization composed of businesses in a specific industry, while a network is a group of individuals or organizations that are connected in some way for mutual benefit. Consortia and strategic alliances are similar to joint ventures but may not involve the creation of a separate organization.

An Entity Created by Two or More Firms Pooling a Portion