Which of the Following Is Not a Reason Joint Ventures

question 4

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:

Collar

An options strategy that brackets the value of a portfolio between two bounds.

Net Outlay

The total amount invested or spent, minus any returns or reimbursements.

Options Strategy

A plan or approach for trading options that can involve buying and/or selling one or more options that differ in one or more of the options' variables.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.