Which of the Following Is a Disadvantage of Joint Ventures

question 14

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)Companies have short-term commitment toward foreign market
• C)It does not give a firm tight control over subsidiaries
• D)It is generally the most costly method of serving a foreign market from a capital investment standpoint

Recognize synergistic benefits in mergers and acquisitions.

Explain the reasons behind defensive mergers and their objectives.

Calculate the highest price payable in acquisitions based on incremental cash flows and growth rates.

Determine and justify the appropriate discount rate for valuing a target company in mergers and acquisitions.

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Definitions:

One Week

A period of time consisting of seven consecutive days.

Frightening Experience

An event or situation that induces fear or terror, often leading to lasting psychological impact or trauma.

Apprehension

A feeling of fear or anxiety about something that might happen, often involving worry about future events or outcomes.

Physical Tension

A state of physical unease or strain often resulting from stress or exercise.