A joint venture is formed when a firm ______ a new market and ______ its resources with those of a local firm to form a new, shared company.

• A. Enters; pools
• B. Produces locally; licenses
• C. Licenses technology; hires staff
• D. Sells only online; partners

Answer: (A)

A joint venture involves two firms creating a new, shared enterprise by combining resources to pursue a specific opportunity. The best phrasing captures both entering a new market and pooling assets with a local partner to form a new company, which is exactly what a joint venture entails—shared ownership and governance in a newly established entity.

The other descriptions describe different arrangements. Producing locally and licensing reflects contract-based manufacturing and IP licensing rather than forming a separate joint entity. Licensing technology and hiring staff points to using an external technology arrangement and internal staffing, not creating a jointly owned company. Selling online and partnering suggests collaboration without establishing a new entity or pooling resources into a new firm.