Where ownership is divided among several partners, the parent organizations are more likely to delegate the operational running of the IJV to ________.
A)local IJV management
B)parent company management
C)middle managers at the parent company level
D)management teams from the largest company in the joint venture

Question

Quizplus · Accepted Answer

When ownership is divided among several partners, it is more likely that local IJV management will be delegated the operational running of the IJV. This is because the partners will want to have control over their respective shares of ownership, and delegating operational control to local management allows for more autonomy at the joint venture level. Parent company management or middle managers from the parent company level may still be involved in some decision-making or oversight, but the daily operations are likely to be handled by local management. Management teams from the largest company in the joint venture may also be involved, but it depends on the ownership structure and agreements of the particular IJV.

Where Ownership Is Divided Among Several Partners, the Parent Organizations