One of the Disadvantages of IJVs Is That There Is

question 14

True/False

One of the disadvantages of IJVs is that there is little sharing of risk.

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Definitions:

Arbitrage Clientele

A group of investors who seek to profit from price differentials of the same asset in different markets, without risk.

Homemade Dividends

The concept that investors can create their own dividend policy by selling a portion of their portfolio of equities, instead of relying on the company's dividend payments.

Dividend Payout

The part of a company's profits that is paid out to shareholders as dividends.

Corporate Dividend

The distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.