Joint Ventures

question 1

Multiple Choice

Joint ventures:

• A) are an alternative to new ventures.
• B) are attractive when speed is important.
• C) are attractive when entry barriers are high.
• D) should be done on a small scale.
• E) reduce the risk of loss of proprietary knowledge.

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Definitions:

Tying

Tying is a sales technique where a seller requires the purchaser of one product to also buy another, secondary product.

Monopoly

A market structure in which a single seller controls the entire supply of a product or service, and hence, the price, effectively blocking entry for any competitors.

Prisoners' Dilemma

A scenario in game theory in which two individuals acting in their own self-interest do not achieve the optimal outcome, illustrating the conflict between individual and collective rationality.

Cooperation

The process of groups or individuals working together towards a common goal.