Which Is NOT True of Joint Ventures

question 89

Multiple Choice

Which is NOT true of joint ventures?

• A)They are jointly owned by two or more parent companies.
• B)They share risks with local partners.
• C) They gain access to the local partner's knowledge about the host country.
• D) They are politically less acceptable than wholly owned subsidiaries.

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Definitions:

Immaterial Breach

A minor violation of a contract that does not significantly harm the interests of the other party or affect the overall performance of the contract.

Mitigate

Mitigate means to make less severe, serious, or painful; in legal and business contexts, it often refers to actions taken to reduce risks or minimize the impact of damages.

Damage

A monetary compensation that a party is legally obligated to pay to another as a result of loss or injury.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.