A joint venture is:
A) a firm that provides only management skills, while others own the production and distribution facilities.
B) a firm selling the right to use some process, trademark, or other right for a fee.
C) a separate firm owned by a parent company.
D) a domestic firm entering into a partnership with a foreign firm.
E) a firm getting rid of surplus inventory.

Question

Quizplus · Accepted Answer

Joint venture is a business arrangement in which two or more domestic or foreign companies join together to form a new company that operates as a separate legal entity. Therefore, option D, which defines joint venture as a domestic firm entering into a partnership with a foreign firm, is the most appropriate answer.

A Joint Venture Is