A partnership created by two or more companies for a specific purpose over a set period of time is called what?

A partnership created by two or more companies for a specific purpose over a set period of time is called what?

• A. Merger
• B. Strategic Alliance
• C. Joint Venture
• D. Consortium

Answer: (C)

A joint venture is a separate legal entity created by two or more companies to pursue a specific project or objective for a defined period. It brings together resources, share of costs and risks, and decision-making under a new structure that exists only for that purpose or time frame. This differs from a merger, where the firms combine to form a single, larger company and usually operate permanently as one entity. It also differs from a strategic alliance, which is a cooperative relationship without creating a new company—partners stay as separate firms and coordinate activities. A consortium is a temporary alliance of firms to undertake a large project, where members remain independent and the collaboration ends when the project is finished.

A joint venture is a separate legal entity created by two or more companies to pursue a specific project or objective for a defined period. It brings together resources, share of costs and risks, and decision-making under a new structure that exists only for that purpose or time frame.

This differs from a merger, where the firms combine to form a single, larger company and usually operate permanently as one entity. It also differs from a strategic alliance, which is a cooperative relationship without creating a new company—partners stay as separate firms and coordinate activities. A consortium is a temporary alliance of firms to undertake a large project, where members remain independent and the collaboration ends when the project is finished.