Opep Corp. received a new building project that had very short turnover and very high resource cost. The company decided to ask
Imog Corp., another builder, to aid them in this project, and the two companies together formed a third company by combining their resources. This third company was formed for the duration of the project and received equal credit after completion. In this scenario, Opep Corp. and Imog Corp. are forming a _____.
Joint venture is the business entity which is created by two or may be more than two parties. Generally, it is characterized by the the shared returns as well as risks, shared ownership, and the shared governance.
<u>In the given case study in which the Opep Corp. forming an alliance with Imog Corp. to work on the project is an example of joint venture.</u>
