Which of the Following Is an Advantage of Joint Ventures

question 78

Multiple Choice

Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?

• A) A foreign firm shares the costs and risks of development with its local partner.
• B) A foreign firm can easily maintain control over how its technological know-how is used by a local partner.
• C) There is less cause for friction and conflict between partners involved in a joint venture.
• D) Joint ventures are ideal to maintain tight control over subsidiaries.
• E) Joint ventures benefit firms lacking the capital to expand operations overseas.

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Definitions:

Corporate Right

The legal entitlements and privileges granted to corporations, including the ability to enter contracts, own assets, and sue or be sued.

Quorum

The smallest number of participants needed in a meeting to validate its proceedings.

Shareholders' Meeting

An official gathering of the shareholders of a company to discuss the company's affairs, make decisions, and vote on corporate issues.

Cumulative Voting

A voting system used in corporate elections that allows shareholders to accumulate their votes and allocate them to one or several candidates, enhancing minority shareholders' chances of representation.