Joint ventures - class-XI
Tests knowledge about joint ventures including definitions, types (contractual and equity), benefits, formation methods, and applications in international business.
Questions
Which is true as far as a Joint Venture is concerned?
- The dual ownership arrangement may not lead to conflicts, resulting in battle for control between the investing firms.
- Foreign firms entering into joint ventures does not share the technology and trade secrets with local firms.
- Joint venture is a very common strategy for entering into foreign markets.
- All of the above
________ can also be described as any form of association which implies collaboration for more than a transitory period.
- Joint venture
- Licensing
- Contract Manufacturing
- Wholly Owned Subsidiaries
_____ makes it possible to execute large projects requiring huge capital outlays and manpower.
- Wholly Owned Subsidiaries
- Franchising
- Joint venture
- Contract manufacturing
Benefits of joint ventures does not include ______________________.
- access to new markets and distribution networks
- sharing of risks and costs with a partner
- access to greater resources, including specialized staff, technology and finance
- the partners have different objectives for the joint venture
Success in a joint venture depends on comprehensive research and a detailed analysis of aims and objectives.
- True
- False
A joint ownership venture may be brought about in which of the following way(s)?
- Foreign investor buying an interest in a local company.
- Local firm acquiring an interest in an existing foreign firm.
- Both the foreign and local entrepreneurs jointly forming a new enterprise.
- All of the above
_______ often enable growth without having to borrow funds or look for outside investors.
- Contract manufacturing
- Joint ventures
- Licensing
- Wholly Owned Subsidiaries
Joint ventures are especially popular with businesses operating in different countries, eg within the transport and travel industries.
- True
- False
Joint Venture means _______.
- joining up of two or more companies for specific objectives
- co-existence of Private Company and Government Company
- co-existence of traditional society and modern society
- co-existence of firm and industry
A contractual joint venture is ________.
- a contractual arrangement between two or more companies in which certain assets and liabilities are shared for a specific purpose and time
- a contractual arrangement between private company and public company
- both (A) and (B)
- none of these
As equity joint venture is _________.
- A technological sharing arrangement between private company and Government company
- A capital sharing arrangement between an MNC and a local company (or even a foreign Government) or another MNC.
- A capital sharing arrangement between the private company and government company
- None of these
Everything is an advantage of joint ventures except ________.
- the costs of a new project can be split between the companies involved
- manufacturing costs will be divided between the firms in the venture
- joint ventures between firms in different countries can create new market opportunities
- management of the joint venture will lead to disagreements.
How many ways are there to establish a joint venture?
- 7
- 4
- 9
- 3
A foreign and a local investor can form a joint firm.
- True
- False
A foreign investor cannot invest in a local company to from a joint venture.
- True
- False
Any two companies joining hands for mutual benefits is known as an _____________.
- association
- joint venture
- merger
- alliance
A joint venture must be based on a memorandum of understanding signed by both the parties highlighting the basis of a joint venture agreement.
- True
- False
Joint ventures can be for long term relationship or short term projects.
- True
- False
The low cost of production for an international company is due to _________.
- low cost of labour
- low cost of raw material
- technically qualified workforce
- all of the above
The main reasons for a starting a joint venture are _____________.
- expansion of business
- development of new products
- moving into new markets
- all of the above
All joint ventures in India require government approvals if a foreign partner or NRI is involved.
- True
- False
Indian companies when join with an international company, they are benefited with ____________.
- Technological advancements
- Increased resources
- Brand name
- All of the above
A joint venture can also be a result of agreement between two companies in two different countries.
- True
- False
Joint venture can be done between _____________.
- government companies
- private companies
- international companies
- all of the above
When two businesses enter into a joint venture, one of the parties benefits from the others goodwill which has already been established in the market.
- True
- False
When an international company joins an Indian company, they gain access to the vast Indian market.
- True
- False
It is becoming increasingly common for companies to create joint ventures with other companies and form strategic alliances with them.
- True
- False
Which of the following are benefits of a joint venture form of company?
- Increased resources and capacity
- Access to new markets and distribution networks
- Access to technology
- All of the above