A joint venture is a specific type of ________.
A)licensing agreement
B)franchise
C)foreign subsidiary
D)strategic alliance

Question

Quizplus · Accepted Answer

A joint venture is a specific type of strategic alliance, in which two or more companies come together to form a new entity to pursue a specific business opportunity. Unlike a licensing agreement or franchise, in which one company grants the other permission to use its intellectual property, a joint venture involves both companies contributing resources and sharing risks and rewards. And while a foreign subsidiary is also a way to expand into new markets, it involves setting up a new wholly owned company, rather than a partnership with another existing company.

A Joint Venture Is a Specific Type of ________