Question

Company A strikes a deal with Company B that benefits both the companies but does not combine their assets. This statement best describes a:

a) Merger

b) Acquisition

c) Joint venture

d) Partnership

Answer 1

A joint venture is the best description.

Step-by-step explanation:

The statement best describes a joint venture.In a joint venture, two companies collaborate and form a separate entity to pursue a specific project or goal. They combine their resources, expertise, and risks while maintaining their separate assets and identities. This allows them to benefit from each other's strengths without fully merging their assets and operations.

For example, Company A and Company B could come together to develop and launch a new product, sharing manufacturing facilities, distribution channels, and marketing efforts, but still remaining separate entities.

Answer 2

Company A strikes a deal with Company B that benefits both the companies but does not combine their assets. This statement best describes a Joint venture

The correct option is C.

Step-by-step explanation:

A joint venture refers to a business agreement between two or more companies to work together on a particular project or a set of objectives while retaining their separate identities. In this scenario, Company A and Company B have collaborated for mutual benefits without combining their assets, which aligns with the concept of a joint venture.

So, the correct option is C.