Advanced Audio and EQ Electronics Recently Established a Joint Venture

question 61

Multiple Choice

Advanced Audio and EQ Electronics recently established a joint venture for the purpose of cooperating in the design, production, and sale of a line of audio equipment. Executives at the two firms must now decide the best way to manage the joint venture. Which of the following choices would defeat the purpose of the joint venture?

• A) hiring an independent management team
• B) jointly sharing management responsibilities
• C) assigning one firm all management responsibilities
• D) continuing completely separate management activities

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