Joint ventures - class-XI

Tests knowledge about joint ventures including definitions, types (contractual and equity), benefits, formation methods, and applications in international business.

28 Questions Published

Questions

Question 1 Multiple Choice (Single Answer)

Which is true as far as a Joint Venture is concerned?

  1. The dual ownership arrangement may not lead to conflicts, resulting in battle for control between the investing firms.
  2. Foreign firms entering into joint ventures does not share the technology and trade secrets with local firms.
  3. Joint venture is a very common strategy for entering into foreign markets.
  4. All of the above
Question 2 Multiple Choice (Single Answer)

________ can also be described as any form of association which implies collaboration for more than a transitory period.

  1. Joint venture
  2. Licensing
  3. Contract Manufacturing
  4. Wholly Owned Subsidiaries
Question 3 Multiple Choice (Single Answer)

_____ makes it possible to execute large projects requiring huge capital outlays and manpower.

  1. Wholly Owned Subsidiaries
  2. Franchising
  3. Joint venture
  4. Contract manufacturing
Question 4 Multiple Choice (Single Answer)

Benefits of joint ventures does not include ______________________.

  1. access to new markets and distribution networks
  2. sharing of risks and costs with a partner
  3. access to greater resources, including specialized staff, technology and finance
  4. the partners have different objectives for the joint venture
Question 5 Multiple Choice (Single Answer)

Success in a joint venture depends on comprehensive research and a detailed analysis of aims and objectives.

  1. True
  2. False
Question 6 Multiple Choice (Single Answer)

A joint ownership venture may be brought about in which of the following way(s)?

  1. Foreign investor buying an interest in a local company.
  2. Local firm acquiring an interest in an existing foreign firm.
  3. Both the foreign and local entrepreneurs jointly forming a new enterprise.
  4. All of the above
Question 7 Multiple Choice (Single Answer)

_______ often enable growth without having to borrow funds or look for outside investors.

  1. Contract manufacturing
  2. Joint ventures
  3. Licensing
  4. Wholly Owned Subsidiaries
Question 8 Multiple Choice (Single Answer)

Joint ventures are especially popular with businesses operating in different countries, eg within the transport and travel industries.

  1. True
  2. False
Question 9 Multiple Choice (Single Answer)

Joint Venture means _______.

  1. joining up of two or more companies for specific objectives
  2. co-existence of Private Company and Government Company
  3. co-existence of traditional society and modern society
  4. co-existence of firm and industry
Question 10 Multiple Choice (Single Answer)

A contractual joint venture is ________.

  1. a contractual arrangement between two or more companies in which certain assets and liabilities are shared for a specific purpose and time
  2. a contractual arrangement between private company and public company
  3. both (A) and (B)
  4. none of these
Question 11 Multiple Choice (Single Answer)

As equity joint venture is _________.

  1. A technological sharing arrangement between private company and Government company
  2. A capital sharing arrangement between an MNC and a local company (or even a foreign Government) or another MNC.
  3. A capital sharing arrangement between the private company and government company
  4. None of these
Question 12 Multiple Choice (Single Answer)

Everything is an advantage of joint ventures except ________.

  1. the costs of a new project can be split between the companies involved
  2. manufacturing costs will be divided between the firms in the venture
  3. joint ventures between firms in different countries can create new market opportunities
  4. management of the joint venture will lead to disagreements.
Question 13 Multiple Choice (Single Answer)

How many ways are there to establish a joint venture?

  1. 7
  2. 4
  3. 9
  4. 3
Question 14 Multiple Choice (Single Answer)

A foreign and a local investor can form a joint firm.

  1. True
  2. False
Question 15 Multiple Choice (Single Answer)

A foreign investor cannot invest in a local company to from a joint venture.

  1. True
  2. False
Question 16 Multiple Choice (Single Answer)

Any two companies joining hands for mutual benefits is known as an _____________. 

  1. association
  2. joint venture
  3. merger
  4. alliance
Question 17 Multiple Choice (Single Answer)

A joint venture must be based on a memorandum of understanding signed by both the parties highlighting the basis of a joint venture agreement.

  1. True
  2. False
Question 18 Multiple Choice (Single Answer)

Joint ventures can be for long term relationship or short term projects.

  1. True
  2. False
Question 19 Multiple Choice (Single Answer)

The low cost of production for an international company is due to _________.

  1. low cost of labour
  2. low cost of raw material
  3. technically qualified workforce
  4. all of the above
Question 20 Multiple Choice (Single Answer)

The main reasons for a starting a joint venture are _____________.

  1. expansion of business
  2. development of new products
  3. moving into new markets
  4. all of the above
Question 21 Multiple Choice (Single Answer)

All joint ventures in India require government approvals if a foreign partner or NRI is involved.

  1. True
  2. False
Question 22 Multiple Choice (Single Answer)

Indian companies when join with an international company, they are benefited with ____________.

  1. Technological advancements
  2. Increased resources
  3. Brand name
  4. All of the above
Question 23 Multiple Choice (Single Answer)

A joint venture can also be a result of agreement between two companies in two different countries.

  1. True
  2. False
Question 24 Multiple Choice (Single Answer)

Joint venture can be done between _____________.

  1. government companies
  2. private companies
  3. international companies
  4. all of the above
Question 25 Multiple Choice (Single Answer)

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.

  1. True
  2. False
Question 26 Multiple Choice (Single Answer)

When an international company joins an Indian company, they gain access to the vast Indian market.

  1. True
  2. False
Question 27 Multiple Choice (Single Answer)

It is becoming increasingly common for companies to create joint ventures with other companies and form strategic alliances with them.

  1. True
  2. False
Question 28 Multiple Choice (Single Answer)

Which of the following are benefits of a joint venture form of company?

  1. Increased resources and capacity
  2. Access to new markets and distribution networks
  3. Access to technology
  4. All of the above