What Distinguishes a Joint Venture from Other Types of Strategic

question 12

Multiple Choice

What distinguishes a joint venture from other types of strategic alliance is that in a joint venture:

• A)The partners hold equity stakes in one another
• B)The partners combine their top management teams
• C)The partners create a new company which they jointly own
• D)The partners are from different countries.

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Definitions:

Factor Prices

The prices of the inputs used in the production process, such as labor wages, capital rental rates, and raw material costs.

Production Function

An equation that describes the output of a production process, given the quantity of inputs used.

Cost Of Production

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

Labor

The employment of human physical and psychological skills in the production process of goods and services.