Chapter 43

Question 1

What are Joint Ventures

Answer 1

With the increase in business risks, hyper-competition, and failures, joint ventures have increased. A joint venture is a separate entity involving two or more participants as partners. They involve a wide range of partners, in­clud­ing uni­versities, businesses, and the public sector.

Question 2

What is domestic joint venture

Answer 2

Two or more small businesses form an alliance for the purpose of exporting their goods and services abroad.

Question 3

What are types of joint venture

Answer 3

• The most common type is that between two or more private-sector companies
• Not-for-profit research organization
• Domestic joint venture
• International joint ventures

Question 4

What is International joint ventures

Answer 4

A local company alliance with foreign company

Question 5

What are the factors for the success of joint venture

Answer 5

• One critical factor for success is the accurate assess­ment of the parties involved and how best to manage the new entity.
• A second factor involves the symmetry between the partners.
• Another factor is that the expectations about the re­sults of the joint venture must be reasonable
• Another factor is the timing

Question 6

What is Acquisitions

Answer 6

An acquisition is the purchase of a company or a part of it in such a way that the acquired com­pany is completely absorbed and no longer exists.