Which One of the Following Is Not a Reason Why

question 7

Multiple Choice

Which one of the following is not a reason why organizations may seek out joint ventures with other organizations?

• A) To distribute new products through another country's distribution channels
• B) To forward the financial responsibility for failure to another, larger organization
• C) To share technological strengths
• D) To capitalize on the partner's knowledge of local markets
• E) To achieve production costs savings through economies of scale

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Definitions:

Obsolete Inventory

Items that can no longer be sold due to outdating, changes in market demands, or deterioration, often leading to their removal from inventory at a loss.

Current Ratio

A financial metric illustrating a firm's capacity to cover its short-term debts within a year, determined by dividing current assets by current liabilities.

Capital Expenditures

Money utilized by an organization to buy, refine, and preserve solid assets such as estates, production sites, or equipment.

Fixed Asset Sales

The process of selling long-term assets, such as property, plant, and equipment, often to generate cash or reduce operational scope.