Questions: When an alliance among two or more enterprises involves formal ownership ties, it is called
a merger.
a partnership.
a collaborative ownership arrangement.
a joint venture.
a multi-owner, mutually-beneficial enterprise.
Transcript text: When an alliance among two or more enterprises involves formal ownership ties, it is called
a merger.
a partnership.
a collaborative ownership arrangement.
a joint venture.
a multi-owner, mutually-beneficial enterprise.
Solution
The answer is: a joint venture.
Explanation for each option:
Merger: A merger involves the combination of two or more companies into a single entity, typically with one company absorbing the other(s). This is not the same as an alliance with formal ownership ties where the companies remain separate entities.
Partnership: A partnership generally refers to a business arrangement where two or more individuals or entities share ownership and the profits and losses of the business. While it involves collaboration, it does not necessarily imply formal ownership ties between separate enterprises.
Collaborative ownership arrangement: This term is somewhat vague and not a standard term in business terminology. It could imply some form of shared ownership, but it is not the specific term used to describe an alliance with formal ownership ties.
Joint venture: A joint venture is a specific type of business arrangement where two or more parties create a new entity by contributing equity, and they share in the revenues, expenses, and control of the enterprise. This involves formal ownership ties and is the correct term for the described scenario.
Multi-owner, mutually-beneficial enterprise: This phrase is descriptive but not a standard term in business. It suggests a business with multiple owners working together for mutual benefit, but it does not specifically refer to the formal ownership ties that define a joint venture.