An American retail chain started doing business in India by forming a _____ with one of India's leading business groups.
A)joint venture
B)subsidiary
C)horizontal merger
D)vertical merger

Question

Quizplus · Accepted Answer

A joint venture is a strategic partnership between two or more companies to form a new entity to carry out a business activity, sharing the risks and profits. As per the given scenario, the American retail chain entered the Indian market by forming a joint venture with one of India's leading business groups, which indicates that they created a new entity together to operate in India. Therefore, option A is the correct answer. Subsidiary, horizontal merger, and vertical merger do not fit the given scenario.

An American Retail Chain Started Doing Business in India by Forming