Which of the following is true of joint ownership?
A) The domestic firm exports management services rather than products.
B) Foreign investors gain complete possession and control over the local firm.
C) The arrangement is mandatory for businesses to enter some foreign markets.
D) A domestic company seldom needs a host country partner to enter into the market.
E) The domestic company loses its title of ownership to foreign investors in the arrangement.

Question

Quizplus · Accepted Answer

Joint ownership is a common arrangement for businesses to enter some foreign markets where it is mandatory to partner with a local company. In a joint ownership arrangement, both parties share ownership and control over the business, and foreign investors do not necessarily gain complete possession and control over the local firm. Additionally, joint ownership does not necessarily lead to the domestic company losing its title of ownership to foreign investors. Therefore, options A, B, D, and E are incorrect.

Which of the Following Is True of Joint Ownership