Which of the Following Is a Disadvantage of Joint Ventures

question 105

Multiple Choice

Which of the following is a disadvantage of joint ventures?

• A)Joint ventures with local partners face a high risk of being subject to various forms of adverse government interference
• B)It can lead to conflicts and battles for control between the investing firms
• C)Companies have short-term commitment toward foreign market
• D)It is generally the most costly method of serving a foreign market from a capital investment standpoint

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Definitions:

Rent Expense

The cost incurred by a company to utilize property or equipment for business operations, typically recognized in the income statement.

Services Revenue

Income generated from the provision of services to clients or customers, distinct from the sale of goods.

Income Statement

An account that outlines a business's financial transactions, such as earnings, costs, and overall profit, for a defined timeframe.

Total Revenues

Total revenues refer to the full amount of income generated by a company from its business activities, including sales of goods or services, before any expenses are subtracted.