The Difference Between a Joint Venture and a Strategic Alliance

question 25

True/False

The difference between a joint venture and a strategic alliance is that typically a joint venture does not involve sharing costs,risks,management or even profits.

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Definitions:

Cash Flow

The total sum of cash and cash-like assets moving in and out of a company.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Cost Of Capital

The essential yield required to justify proceeding with a capital expenditure venture, such as the erection of a new plant.

Cash Flow

The net amount of cash being transferred into and out of a business, influencing its liquidity, investment, and operational strategies.