Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

What is the primary goal of a joint venture?

1. To share profits indefinitely

2. To collaborate on a specific project

3. To form a legal partnership

4. To limit liability

The correct answer is: To collaborate on a specific project

The primary goal of a joint venture is to collaborate on a specific project. In a joint venture, two or more parties come together to contribute resources, expertise, and capital to accomplish a particular objective while remaining separate entities. This arrangement allows them to leverage each other's strengths and share risks associated with the project. Organizations often establish joint ventures to enter new markets, develop new products, or undertake large-scale projects that would be challenging to handle alone. While sharing profits, forming legal partnerships, and limiting liability can be considerations in a joint venture, they are not the primary focus. The essence of a joint venture lies in the collaboration and pooled resources directed toward achieving a specific goal, making it distinct from more permanent or broader forms of partnership or business integration.