When two or more firms come together to create a new business entity that is legally separate and distinct from its parents, it is known as _________.

Contract manufacturing

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Franchising

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Joint ventures

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Licensing

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Solution

The correct option is C Joint ventures
Joint venture is nothing but the contractual agreement between two or more parties to work together in which they share the profits and losses. Hence, when two or more firms come together to create a new business entity that is legally separate and distinct from its parents, it is known as joint ventures.

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Similar questions

When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as___ .

When two or more firms come together to create a new business entity that is legally separate and distinct from its parents is known as

(a) Contract manufacturing

(b) Franchising

(d) Licensing

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