Which strategy forms a new enterprise through collaboration of two organizations, with both maintaining their separate identities?

Which strategy forms a new enterprise through collaboration of two organizations, with both maintaining their separate identities?

• A. Market Penetration
• B. Franchise
• C. Merger
• D. Joint Venture

Answer: (D)

This item is about forming a joint venture. A joint venture is when two or more organizations collaborate to create a new business venture or project, sharing resources, risks, and rewards, while each parent company keeps its own separate identity. The key idea is that a new enterprise is created through the partnership, not a full merger, and both firms remain distinct brands or entities. Other options don’t fit this scenario. Market penetration focuses on increasing sales of existing products in current markets, with no new collaborative venture formed. Franchising involves one company licensing its business concept to another to operate under its brand, which isn’t about two firms creating a new joint enterprise. A merger combines two firms into one entity, with ownership and identity typically consolidated rather than kept separate.

This item is about forming a joint venture. A joint venture is when two or more organizations collaborate to create a new business venture or project, sharing resources, risks, and rewards, while each parent company keeps its own separate identity. The key idea is that a new enterprise is created through the partnership, not a full merger, and both firms remain distinct brands or entities.

Other options don’t fit this scenario. Market penetration focuses on increasing sales of existing products in current markets, with no new collaborative venture formed. Franchising involves one company licensing its business concept to another to operate under its brand, which isn’t about two firms creating a new joint enterprise. A merger combines two firms into one entity, with ownership and identity typically consolidated rather than kept separate.