Builders Inc., Real Estate Broker, Inc., and Developers, Inc. form a business to purchase, develop, and build a shopping mall in Temecula, California. According to their agreement, the business will operate only until the mall is built, then the mall will be sold to Downtown Mall, Inc., an owner and operator of shopping malls across the United States. Once the sale is complete, their business will be dissolved. What type of business have they formed?

The reason is that in a joint venture, two or more than two companies form a partnership aggrement to achieve the combined objectives in a limited time constraint. The companies gain synergy in achieving that combined objective which is all because of the pooling of resources of the venturing organization. Here is the similar case. Three organization here had formed a contract and agreed to pool their resources to achieve a combined objective. Once this objective is achieved the partnership (Joint Venture) will be dissolved.

Tundexi Tundexi · Answer 2 · 2021-12-07T14:17:52+01:00

The type of business that Builders Inc., Real Estate Broker, Inc., and Developers, Inc. formed is known as Joint Venture

A joint venture refers to a business which is formed by two or more companies to form a partnership agreement to achieve the combined objectives in a limited time constraint.

In a joint venture , the companies gain synergy in achieving that combined objective through pooling of resources of the venturing organization.

Therefore, the type of business that Builders Inc., Real Estate Broker, Inc., and Developers, Inc. formed is known as Joint Venture