An advantage of forming a joint venture is
A) no shared costs or risk.
B) a perpetual arrangement.
C) it's a good strategy for entering new markets where you have never had a presence.
D) it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture.

Question

Quizplus · Accepted Answer

Forming a joint venture is a good strategy for entering new markets where you have never had a presence. Joint ventures provide a way to share the costs and risks associated with foreign market entry with a partner who has local knowledge and expertise, making it easier to succeed and reduce potential losses. A joint venture also allows for pooling of resources and technology, which can result in greater efficiency and profitability. However, a joint venture requires trust and cooperation between the partners and the agreement should be structured to protect the interests of both parties. Option A and D are incorrect because sharing costs and risks is a key part of a joint venture and partnerships are built on trust and cooperation, which involves disclosing information about strategy and management. Option B is incorrect because joint ventures can be structured for a specific time period and purpose, rather than a perpetual arrangement.

An Advantage of Forming a Joint Venture Is