Question

ABC Co. wants to market their products in Brazil. Armed with the design and manufacturing capability, ABC looks for a company with the distribution channels and knowledge of the Brazilian culture necessary to market their products. After conducting research, ABC decides to form a partnership with XYZ Inc. in Brazil. The company will be jointly owned and operated. In this scenario, ABC Co. forms a(n) __________ with XYZ Inc.
a) joint venture
b) operating subsidiary
c) franchise
d) licensing agreement

Answer 1

Answer:

a) joint venture

Explanation:

Joint venture

It is the type of business , where the two or more parties agree to sum their finance to in order achieve a specific target or to start a business together .

Which can be a new project or any new activity .

The profit or loss is distributed with respect to their contribution in the share .

Hence , the company ABC forms a joint venture with the XYZ Inc .