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) none of the above.

Question

Quizplus · Accepted Answer

A joint venture is a business partnership between two or more parties, with the purpose of achieving a specific goal, such as entering a new market, developing a new product or technology, or pooling resources for a specific project. In this case, option D is the correct answer as it refers to a joint venture between a domestic and foreign firm. Option A refers to a management contract, option B refers to licensing, and option C refers to a subsidiary.

A Joint Venture Is