ITPEC IP October 2020 Question 81
ITPEC IP October 2020 — Question 81 of 100
A joint venture is a company jointly funded and managed by two or more participating companies. The partners combine resources for a shared objective, divide ownership and risk, and govern the new entity according to their agreement.
Answer (a)
Why not others:
- broad cooperation through investment or cross-shareholding describes a business alliance generally
- obtaining control through merger or acquisition is M&A
- granting another party permission to use technology or a brand is licensing
Key rule: A joint venture creates a jointly owned business entity; an alliance may cooperate without one, an acquisition transfers control, and a license grants usage rights.
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