A Consortium Is Different from a Joint Venture in That

question 61

Multiple Choice

A consortium is different from a joint venture in that a consortium:

• A) usually operates in a country in which the participants are already active.
• B) typically involves a large number of participants.
• C) restricts the right to hold an equity position by its major partners.
• D) does not involve the creation of a separate legal entity.
• E) is formed mainly for executing short-term projects.

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Definitions:

Compensating Differences

Wage differentials that compensate workers for undesirable job attributes, like risk of injury or undesirable hours.

Nonmonetary Characteristics

Features or aspects of a job or decision that are not related to salary or financial gain, such as workplace environment or job satisfaction.

Wage Differentials

The variations in wage rates due to factors such as occupation, industry, location, and skills level.

Labor Immobility

A situation where workers find it difficult to move between jobs or geographical locations, often due to skills, qualifications, or other barriers.