Which of the following business forms is likely to present the greatest risk to an expanding firm in the context of both financial and human investments?
A) A licensing arrangement
B) Franchising
C) Piggybacking
D) A joint venture

Question

Quizplus · Accepted Answer

A joint venture involves partnering with another company to achieve a common goal, which can be a risk in terms of financial investment and human resources. Both parties involved in the joint venture may have different priorities and goals, which can lead to conflicts and potentially hinder the success of the expanded firm. Additionally, there may be legal complexities and potential liabilities associated with a joint venture. Licensing arrangements, franchising, and piggybacking may also have risks, but they generally involve less involvement and control over the expansion of the business.

Which of the Following Business Forms Is Likely to Present