Which of the following is true of joint ventures?
A) They are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution.
B) They directly violate Section 2 of the Sherman Act.
C) They do not violate Section 1 of the Sherman Act as they involve cooperation between actual or potential competitors.
D) They refer to the acquisition of one company by the other.

Question

Quizplus · Accepted Answer

Joint ventures (or strategic alliances) are arrangements in which two or more entities collaborate with respect to research, development, production, marketing, or distribution. Because they generally involve cooperation between actual or potential competitors, joint ventures could possibly violate Section 1 of the Sherman Act.

Which of the Following Is True of Joint Ventures