Question

In thinking about it, Jerzy realizes that he and Leon could create a shoe-manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon’s expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy.

Answer 1

Joint venture

Step-by-step explanation:

A joint venture is a business setup that is formed by two or more parties, in this case between Jerzy and Leon. In such a setup, the ownership, financial risks, governance and decision making is all shared. This reduces the burden of failure on one party and also allows both parties to bring together their resources and capabilities so that the business has a better chance of success. Similarly, Jerzy has expertise in shoe design and Leon’s expertise in navigating Spanish management and business practices will come together and such a setup will be an example of joint venture.