Companies May Have Several Reasons for Creating Joint Ventures

question 225

Multiple Choice

Companies may have several reasons for creating joint ventures. Which of the following statements is one reason why firms may decide to form a joint venture?

• A) They may wish to contract manufacture with each other.
• B) They will save time to market if they pool their technological know-how.
• C) These arrangements are always less risky than strategic alliances.
• D) These arrangements avoid the temptation to tap into marketing and management expertise of the parent companies.

---

Definitions:

Lung Cancer

A type of cancer that begins in the lungs, frequently associated with smoking and exposure to harmful substances like asbestos.

Impaired Learning

a condition or situation in which an individual has difficulty acquiring knowledge or skills to the same level as others.

Endorphins

Natural pain-relieving chemicals produced by the body that also contribute to feelings of pleasure and well-being.

Opiates

A class of drugs derived from opium that have potent pain-relieving properties and can lead to addiction.