BPM Corp. is a manufacturer of radar systems for regional-sized jet aircraft. The company has announced plans to enter into a joint venture with J3 Composites, a producer of advanced composite materials. The announced venture will produce a new, combined product consisting of the radar unit and protective composite cover. Which of the following ownership arrangements would be most typical for a joint venture?
a. BPM will own more than 50 percent of the venture and a new company will be formed.
b. J3 will own more than 50 percent of the venture and a new company will be formed.
c. BPM and J3 will both own 50 percent of the venture and a new company will be formed.
d. BPM and J3 will both own 50 percent of the venture but no new company will be formed.
Answer: BPM and J3 will both own 50 percent of the venture and a new company will be formed.