Which of the Following Is NOT a Reason Joint Ventures

question 40

Multiple Choice

Which of the following is NOT a reason joint ventures fail?

• A) Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.
• B) The venture may not be supported equally by both partners.
• C) The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways.
• D) Stakeholders from both partners are equally satisfied.
• E) The venture may begin to compete more with one of the partners than the other.

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Definitions:

S&P 500

A U.S. stock market index reflecting the market value of 500 major companies with common stock on the NYSE or NASDAQ.

Correlation

A statistical measure that describes the degree to which two variables move in relation to each other.

Standard Deviation

A statistical measure that represents the dispersion or variability of a data set or investment returns around the mean.

Covariance

A measure of the degree to which two variables move in relation to each other. It can indicate if the movements are positively or negatively correlated.