Question

Which of the following is NOT a disadvantage of joint ventures? A. Ajoint venture is the most costly and risky choice B. Firms risk giving control of its technology to its partner C. Ajoint venture does not give a firm tight control over subsidiaries D. Shared ownership arrangements can lead to conflicts and battles for contro

Answer 1

Answer:

A. A joint venture is the most costly and risky choice.

Explanation:

A joint venture is an arrangement in which two or more companies agree to share their resources for a specific activity. In this arrengement, all the parties are responsible for the losses and earnings and it allows the companies that are part of it to decrease the costs and share the risk. Because of that, the answer is that the option that is not a disadvantage of joint ventures is: a joint venture is the most costly and risky choice as a joint venture helps to decrease costs and risk as they are shared between the companies that are part of it.