ABC would like to market their products in Brazil. Armed with the design and manufacturing capability, ABC is looking for a company with the distribution channels and knowledge of the Brazil culture necessary to market their products. ABC has decided to form a partnership with XYZ in Brazil. The company will be jointly owned and independently operated. Which of the following is ABC forming with XYZ?

a. Franchise

b. Joint venture

c. Licensing agreement

d. Operating subsidiary

Question

Business

Socks

27 October, 08:09

ABC would like to market their products in Brazil. Armed with the design and manufacturing capability, ABC is looking for a company with the distribution channels and knowledge of the Brazil culture necessary to market their products. ABC has decided to form a partnership with XYZ in Brazil. The company will be jointly owned and independently operated. Which of the following is ABC forming with XYZ?

a. Franchise

b. Joint venture

c. Licensing agreement

d. Operating subsidiary

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Answers (1)

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Braylen Obrien · Answer 1

Answer: Joint venture

Explanation: In simple words, joint ventures refers to the business arrangement in which two separate entities join their operations for a single venture with the intent of earning monetary benefits or other such benefit as such.

In such an arrangement the two entities join their operations but keep their entities separate for their existing businesses. In the given case, ABC and XYZ have joined their operations in relation to each pother needs with the common goal of earning profits.

Hence the correct option is B.