A Joint Venture Is an Attractive Way for a Company

question 93

Multiple Choice

A joint venture is an attractive way for a company to enter a new industry when

• A) a firm is missing some essential skills or capabilities or resources and needs a partner to supply the missing expertise and competencies or fill the resource gaps.
• B) it needs access to economies of scope and good financial fits in order to be cost-competitive.
• C) it is uneconomical for the firm to achieve economies of scope on its own initiative.
• D) the firm has no prior experience with diversification.
• E) it has not built up a hoard of cash with which to finance a diversification effort.

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Definitions:

Chloride Shift

The movement of chloride ions into red blood cells as hydrogen ions move out to maintain electrochemical equilibrium, especially important in carbon dioxide transport in the blood.

Bicarbonate Ions

An alkaline ion that acts as a pH buffer in blood and other bodily fluids.

Red Blood Cell Membrane

The semi-permeable membrane that encloses the cytoplasm of red blood cells, maintaining its shape and flexibility, and facilitating gas exchange.

Alveolar Pressure

The pressure within the lung alveoli, which changes during different phases of breathing.