An Advantage of Forming a Joint Venture Is

question 326

Multiple Choice

An advantage of forming a joint venture is

• A) no shared costs or risk.
• B) a perpetual arrangement.
• C) it's a good strategy for entering new markets where you have never had a presence.
• D) it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture.

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Definitions:

Default Rates

The percentage of borrowers who fail to repay their loans according to the terms of their agreements.

Foreclosure Rates

The percentage of properties undergoing the process of legal repossession by lenders due to borrowers' failure to make mortgage payments.

Lending Standards

Regulations and criteria set by financial institutions to determine the qualification of borrowers for loans.

Alt-A Loans

Loans extended with little documentation or verification of the borrowers’ income, employment, and other indicators of their ability to repay. Because of this poor documentation, these loans are risky.