Differentiate Between Joint Venture and Acquisition as a Method to Enter

question 67

Essay

Differentiate between joint venture and acquisition as a method to enter new industries. Discuss the advantages and disadvantages associated with each.

---

Definitions:

Investor Losses

The decrease in monetary value that investors experience in their investment portfolio due to market movements or poor investment decisions.

Fraud or Misrepresentation

Involves intentionally deceiving or misleading parties for financial gain or to damage them financially.

Ownership Dilution

Occurs when a company issues new stock which results in a decrease of an existing shareholder's ownership percentage of that company.

Going Public

The process by which a privately-held company offers shares to the public for the first time, often through an Initial Public Offering (IPO).