A consortia is best described as?

• A. A long-term management alliance between firms
• B. A permanent joint venture that merges all assets
• C. Short term legal entity to deliver a particular project (Correct)
• D. A licensing agreement to market a product

Answer: (C)

A consortium is a temporary arrangement where several firms join forces to deliver a specific project, forming a separate legal entity to manage resources, governance, and risk for that project. This setup is designed to be project-focused and time-bound: once the project is finished, the entity can wind down and the arrangements dissolve rather than becoming a permanent structure.

This distinguishes it from a permanent joint venture that merges all assets, which implies a lasting business combination rather than a short‑lived project delivery vehicle. It also differs from a long-term management alliance, which typically spans over multiple projects and ongoing operations. And it isn’t a licensing agreement, which deals with rights to market or use a product rather than creating a temporary organizational form to complete a project.

So the described approach—a short-term legal entity created to deliver a particular project—best fits what a consortium is.