Question

When a company invests in a foreign firm, and holds active ownership of the firm, then the company is said to be in a joint venture with the foreign firm. T/F

Answer 1

Answer: TRUE

Explanation: JOINT VENTURE is a business agreement whereby two or more entities share the ownership, expense, return on investments, profit, control etc. To gain a positive synergy from their competitors.

It can between private entity, public entity or a foreign entity.

It allows risk and return associated to an investment or business to be shared among the parties as agreed

It can be for a long or short period of time