A is a type of expansion that involves two

businesses creating a new, temporary business, separate from the parent company. An example might be

two tech companies working together to increase sales globally.

Joint Venture

Explanation:

This is the definition of a Joint Venture, which occurs when two companies that may be in the same industry or not, come together in a temporary commercial agreement with the objective of carrying out some type of project that is beneficial to both.

To accomplish the joint task, companies create a new company with a determined time, and thus join together efforts so that there is greater efficiency in achieving the objectives. This strategy is common to be used when there is expansion of the businesses of two companies, therefore, there is the union of them so that the common objectives are achieved more quickly and effectively, since there is the sharing of resources, technology, economies of scale , greater market gain among other benefits and profitability. Therefore, the risk is also shared, and if negative situations occur during the merger of the companies, there will also be losses for both.

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