In which type of joint venture do the parties choose to invest together in downstream business activities?
A) Backward integration
B) Multistage
C) Forward integration
D) Buyback

Question

Quizplus · Accepted Answer

In a forward integration joint venture, the parties invest together in downstream business activities, such as production, marketing, and distribution. This allows them to control the entire supply chain and capture more value. Backward integration, on the other hand, involves investing in upstream activities, such as raw materials or production inputs. Multistage joint ventures involve investing in different stages of the value chain, while buyback joint ventures involve repurchasing assets or shares previously sold to another party.

In Which Type of Joint Venture Do the Parties Choose