When a company invests in a foreign firm and holds active ownership of the firm,then the company is said to be in a joint venture with the foreign firm.

Question

Quizplus · Accepted Answer

A joint venture involves two or more parties agreeing to pool their resources for a specific task, project, or business activity, but it does not necessarily require one party to hold active ownership of the other. Active ownership in a foreign firm typically refers to foreign direct investment (FDI), not a joint venture.

When a Company Invests in a Foreign Firm and Holds