Certified Professional in Health Care Risk Management (CPHRM) 2025 – 400 Free Practice Questions to Pass the Exam

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What is a joint venture?

An agreement between a single entity to pursue business opportunities

An informal collaboration without legal recognition

An undertaking by two or more entities to pursue business or other ventures

A joint venture refers to an undertaking where two or more entities come together with a common goal, often to pursue a specific business opportunity or project. This arrangement allows the parties involved to pool their resources, expertise, and capital to achieve results that they might not easily attain independently. The collaboration can take various forms, including sharing profits, costs, and risks associated with the venture.

In this context, joint ventures are typically established through a formal agreement outlining each party's contributions, responsibilities, and the terms of the partnership. This definition captures the essence of a joint venture, emphasizing the collaboration of multiple entities for a shared purpose, which distinguishes it from other arrangements that involve only a single entity, lack legal recognition, or are binding partnerships without the shared venture aspect.

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A formal partnership that is legally binding

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