BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of these is not an advantage of a join venture?
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The partners have different objectives
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Sharing of risks and costs with a partner
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Access to new knowledge, and greater resources
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Increased capacity
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Explanation:
Detailed explanation-1: -D. Profit or loss on joint venture is shared as per their capital ratio. Answer» D. Profit or loss on joint venture is shared as per their capital ratio.
Detailed explanation-2: -Which of the following is a disadvantage of joint ventures? It can lead to conflicts and battles for control between the investing firms.
Detailed explanation-3: -The reasons behind forming a joint venture include business expansion, development of new products or moving into new markets, particularly overseas. Your business may have strong potential for growth and you may have innovative ideas and products.
There is 1 question to complete.