Which option is NOT an establishment option?

Which option is NOT an establishment option?

• A. New business
• B. Existing business
• C. Franchise
• D. Joint venture

Answer: (D)

Establishment options describe ways to start or acquire a business as a standalone entity. A new business means starting from scratch, an existing business means buying an already operating company, and a franchise means buying into an established brand and operating system. A joint venture is a temporary collaboration between two or more parties to undertake a specific project, with shared ownership and control, rather than creating a single new, independent business. Because of that, a joint venture isn’t an establishment option.

Establishment options describe ways to start or acquire a business as a standalone entity. A new business means starting from scratch, an existing business means buying an already operating company, and a franchise means buying into an established brand and operating system. A joint venture is a temporary collaboration between two or more parties to undertake a specific project, with shared ownership and control, rather than creating a single new, independent business. Because of that, a joint venture isn’t an establishment option.