Final answer:
A joint venture, option c, is a business collaboration between two or more companies for a specific project. This is distinct from a partnership, corporation, or merger, as it is project-focused and the companies maintain their separate identities outside the joint venture.
Step-by-step explanation:
Understanding Business Structures
A joint venture is a special business arrangement that exists when two or more companies join to undertake a specific project. The correct option for the student's question is c) Joint venture. In contrast to other business forms, a joint venture is typically created for a single business project or objective, with each participating company bringing its own resources and expertise to the venture. Unlike general partnerships, where two or more people work together in owning their business and share responsibilities and profits, a joint venture is a more project-focused collaboration.
Furthermore, this arrangement differs from a corporation, which is a larger and more formal legal entity that can be either public or private, owned by shareholders, and is managed by directors and executives. When we speak of a corporation, we are usually referring to a long-standing business that operates continuously rather than a collaboration on a specific project. On the other hand, a merger involves two firms coming together to form one entity, which is dissimilar to a joint venture where each company maintains its separate identity outside of the project.
The formation of a joint venture allows the involved parties to share in the risks and rewards associated with a particular business project. Such arrangements can be beneficial in several industries and for various purposes, such as expanding into new markets, sharing technology or expertise, or developing new products or services.