Question

What is a consortium? A. an agreement between two or more governments to provide for reciprocal foreign investment protection B. an international joint venture owned by at least three organizations C. an agreement signed by most governments to protect intellectual property rights the ownership of a company D. by a government and a foreign company

Answer 1

Answer:

B. an international joint venture owned by at least three organizations

Explanation:

Consortium, in the business sector is defined as a business alliance of companies, individuals, or other entities that got together to achieve a specific objective.

The objective benefits all the parties and gain more profits in whatever business enteprise that was engaged in. For example, inorder to bid on the government contract of building a power plant in Mexico, 3 or more smaller power generation companies would come together to setup a single business entity with the aim to pull resources together, bid and deliever on the project if awarded.

This is as a result of the fact that non of them could be able to handle the project alone when awarded due to large financial inplication and high expertise that might be required for it.

Answer 2

Answer:

A. an agreement between two or more governments to provide for reciprocal foreign investment protection

Explanation:

A consortium is an agreement between two or more companies, organization, individuals or government (or a combination of this entities) so as to achieve a common goal stated in the agreement. Every entity under the consortium are independent with regard to their normal business but are only responsible for the obligations stated in the consortium agreement. An example can be seen in educational institutions where students are made to benefit from collective resources.