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?

Question

Justin Montgomery

Business

3 October, 14:14

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?

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Answers (1)

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Courtney Mcknight · Answer 1

Joint Venture

Explanation:

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.