Question

When General Motors and Toyota created a separate organization called New United Motor​ Manufacturing, Inc.​ (NUMMI) to build cars in​ California, they formed a​ _________.

a) Strategic alliance
b) Foreign subsidiary
c) Franchise
d) Joint venture
e) Domestic subsidiary

Answer 1

General Motors and Toyota formed a joint venture called NUMMI to build cars in California.

Step-by-step explanation:

The correct answer is d) Joint venture. When General Motors and Toyota created a separate organization called New United Motor​ Manufacturing, Inc.​ (NUMMI) to build cars in​ California, they formed a joint venture. A joint venture is a business arrangement in which two or more companies come together to form a new entity for a specific purpose or project. In this case, General Motors and Toyota partnered to build cars together.