16. Coca Cola and Pepsi Max are two firms that compete in the soft drink market. These two competitors have decided to invest $10 million to form a new company, Fruit Tea, which will manufacture flavoured teas. This new firm is defined as a: a. Consolidation. b. Strategic alliance. c. Joint venture. d. Merged alliance. 17. Venture capitalists provide start-up companies a, all the money they will need up front. b. enough money at each stage so that they can reach the next stage or major checkpoint. c. assistance in managing the initial public offering (IPO). d. funding intended to buy out the company's founders. 18. Wealthy individuals who provide equity investment for new firms are called a. white knights. b. white knights and red herrings. c. angel investors. d. red herrings