Answer: c) if the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology.
Explanation:
When firms expand into international markets, it is a standard practice to partner with a local company that already has expertise in the market to enable an easier transition.
This creates a problem however because in partnering with the company, the competitive advantage that the company holds could be at risk. This is even more so if the competitive advantage is based on proprietary technology and by entering into a partnership and giving another company access to that technology, there is a risk that control could be lost.
The common key concepts that are common to the quality
improvement approach are the following;
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Usage of QI tools, this is used for mapping,
analyzing and collecting data.
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Outcomes and measuring are also used.
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Lastly, application of statistical process
control
Answer:
When you diversify your investments, you reduce the amount of risk you're exposed to in order to maximize your returns. Although there are certain risks you can't avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.
Answer:
Stock R more beta than Stock S = 4.2%
Explanation:
given data
Stock R beta = 1.8
Stock S beta = 0.75
expected rate of return = 9% = 0.09
risk-free rate = 5% = 0.05
solution
we get here Required Return
Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta ...........1
Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B
Required Return (Re) =
so here
Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8
Stock R = 0.122 = 12.2 %
and
Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75
Stock S = 0.08 = 8%
so here more risky stock is R and here less risky stock is S
Stock R is more beta than the Stock S.
Stock R more beta Stock S = 12.2 % - 8%
Stock R more beta Stock S = 4.2%
