What allows a joint venture to take place?

A joint venture is characterized by the collaboration between two or more parties who share resources and expertise for a specific project or business activity. This arrangement allows each party to contribute what it does best, leveraging their respective strengths for mutual benefit.

In this context, the sharing of resources ensures that each participant can effectively work towards common goals, while still maintaining their independence outside of the joint endeavor. A joint venture is often established for a limited duration, typically tied to the life of the project, rather than resulting in a permanent merger or acquisition.

The other options describe scenarios that involve more permanent or structural changes to companies, like mergers or acquisitions, which are not the essence of a joint venture. Joint ventures focus on collaboration without merging identities, allowing companies to engage in a specific venture while maintaining their separate business entities.