Question

Cad Cream Inc, an ice cream company, has collaborated with Bite Snack Inc, a food manufacturing company, to come up with a third company, Cream Bite Inc This new company manufactures energy bars with a variety of flavors. In this context, Cream Bite Inc is a _____
A) joint venture

B) global new venture

C) multinational franchise

D) wholly owned affiliate

Answer 1

Answer:

A) Joint Venture

Explanation:

Based on the scenario being described within the question it can be said that in this context, Cream Bite Inc. is a Joint Venture. This is a business term that refers to an arrangement between two parties in which both combine their resources in order to meet an agreed upon goal in a more efficient manner and in a much smaller time-frame than if they were to do it separately.

Answer 2

Answer: Joint venture

Explanation:

A joint venture (JV) is a business arrangement whereby two or more businesses or organizations agree to pool their resources together for the purpose of accomplishing and achieving a specific goal. The task to be achieved can either be a business activity or a new project.

The benefits of a joint venture are shared investment because each firm contributes a certain amount of capital. Joint venture can also lead to new market penetration, revenue streams and enhances credibility.