Companies May Have Several Reasons for Creating Joint Ventures

question 225

Multiple Choice

Companies may have several reasons for creating joint ventures. Which of the following statements is one reason why firms may decide to form a joint venture?

• A) They may wish to contract manufacture with each other.
• B) They will save time to market if they pool their technological know-how.
• C) These arrangements are always less risky than strategic alliances.
• D) These arrangements avoid the temptation to tap into marketing and management expertise of the parent companies.

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Definitions:

Piaget's Theory

A framework developed by Jean Piaget that describes stages of cognitive development through which children progress as they grow.

Objective Reality

The concept of an existence or truth that is independent of personal views, interpretations, or emotions.

Immanent Justice

The view that retribution for wrongdoing is a direct consequence of the wrongdoing.

Preoperational Period

A stage in Piaget's theory of cognitive development, where children (ages 2-7) begin to engage in symbolic play and struggle with logic.