Which of the Following Is an Advantage of Joint Ventures

question 106

Multiple Choice

Which of the following is an advantage of joint ventures?

• A) They create strong ties, trust, and commitment between the partners.
• B) They are based on contractual agreements rather than partial ownership.
• C) They require the lowest amount of investment relative to the other alliance types.
• D) They can be easily initiated and terminated.

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Definitions:

Hedge

An investment position intended to offset potential losses or gains that may be incurred by a companion investment, commonly used for risk management.

Exchange Variations

Refers to the fluctuations in the value of currencies in the foreign exchange market, impacting the value of foreign currency transactions.

Foreign Currency

Foreign Currency is the currency of another country, which is required for conducting international transactions or investments.

Annual Repayments

are fixed amounts paid back by a borrower to a lender at regular intervals over a year to reduce or settle a loan's principal and interest.