What Distinguishes a Joint Venture from Other Types of Strategic

question 12

Multiple Choice

What distinguishes a joint venture from other types of strategic alliance is that in a joint venture:

• A)The partners hold equity stakes in one another
• B)The partners combine their top management teams
• C)The partners create a new company which they jointly own
• D)The partners are from different countries.

---

Definitions:

Purchase Order

A formal document issued by a buyer to a seller, authorizing the purchase of goods or services as specified at agreed-upon terms.

Fair-Value Hedge

A hedge that protects against changes in the fair value of an asset, liability, or firm commitment that is attributable to a particular risk.

Forward Contract

A derivative financial instrument where two parties agree to buy or sell an asset at a predetermined future date and price.

Spot Rates

The current price at which a particular security, currency, or commodity can be bought or sold for immediate delivery.