Which of the following best describes joint ventures?

Joint ventures are best described as enterprises formed to share risk and resources. This arrangement typically involves two or more parties, which can be companies, organizations, or individuals, who come together to pool their resources for a specific project or business venture. By collaborating, the partners can leverage each other’s strengths, reduce individual risk exposure, and enhance their competitive advantage in the market. Joint ventures allow for shared expertise, reduced capital requirements, and entry into new markets while maintaining separate legal identities.

In contrast, options such as investments made through foreign stocks imply a focus on passive investment in publicly traded companies rather than collaborative business operations. Unilateral business expansions suggest actions taken independently, which does not encapsulate the essence of partnership inherent in joint ventures. Finally, a portfolio of diverse global investments refers more to a variety of investment holdings rather than the collaborative business venture that characterizes joint ventures.