One of the advantages of a__________is that the founding companies bear only part of the costs and the risks of that business.
A) business acquisition
B) direct foreign investment
C) direct export
D) joint venture

Question

Quizplus · Accepted Answer

In a joint venture, two or more companies collaborate to create a new business, allowing each company to share the costs and risks. This reduces the financial burden on the founding companies and helps them diversify their portfolio without investing a significant amount of money or resources. On the other hand, in business acquisition, a company acquires another company, which may involve a large investment and substantial risks. Direct foreign investment involves establishing a subsidiary or acquiring an existing company in a foreign country, while direct export involves selling goods produced in one country to another country without involving an intermediary. Neither of these options allows for shared costs and risks as joint ventures do.

One of the Advantages of A__________is That the Founding Companies