Joint ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity. The statement is False. Thus the correct answer is B.
What is a joint venture?
A joint venture is a collaboration between two or more individuals that seek to grow one project or business for profit while sharing the possible risks as well as profit.
The joint venture, which includes the allocation of resources, profits, losses, and expenditures by the two companies, is an independent legal entity from their other business enterprises.
Joint ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity. This is false as the given characteristics reflect the merger, not the joint venture.
Therefore, the statement is False.
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