A Joint Venture Is an Attractive Way for a Company

question 61

Multiple Choice

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

• A)the pool of attractive acquisition candidates in the target industry is relatively small.
• B)the firm needs better access to economies of scope in order to be cost-competitive.
• C)the industry is growing slowly and adding too much capacity too soon could create oversupply conditions.
• D)the firm has no prior experience with diversification and the industry is on the verge of explosive growth.
• E)the opportunity is too risky or complex for the company to pursue alone or when the company lacks some important resources or competencies and needs a partner to supply them.

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Definitions:

Salary Range

The spectrum of potential earnings for a specific position, defined by a minimum and maximum possible salary.

Follow-Up Communication

The process of making further contact for clarification, feedback, or progress updates after an initial interaction or communication.

Potentially Illegal

Activities or actions that could be deemed as not lawful or against the law, depending on jurisdiction and specific circumstances.

EEOC

stands for Equal Employment Opportunity Commission, a federal agency that administers and enforces civil rights laws against workplace discrimination.