Tag: private, public and global enterprises

Questions Related to private, public and global enterprises

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


Correct Option: D
Explanation:

joint venture (JV) is a business entity created by two or more parties, generally characterised by shared ownership, shared returns and risks, and shared governance.Most joint ventures are incorporated, although some, as in the oil and gas industry, are "unincorporated" joint ventures that mimic a corporate entity.

_______ 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


Correct Option: B

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

  1. True

  2. False


Correct Option: B
Explanation:

It is in all the sectors including IT, MEDIA ,Food chains etc

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


Correct Option: A
Explanation:

joint venture is a temporary business association between two or more persons or organizations for profit without forming a permanent partnership, corporation, or other business entity. Members of the joint venture maintain their independence.

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


Correct Option: A
Explanation:

The contractual joint venture is a different legal arrangement from the incorporated or equity joint venture in which two or more parties set up a separate legal entity to act as the vehicle for carrying out the project.See also joint venture; equity joint venture. Model of International Joint Venture Contract.

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


Correct Option: B
Explanation:

A joint venture is created by two or more parties generally characterized by a share of ownership, return, risk and share profits as equity it is an agreement between two companies to become one venture, for example, Starbucks is a joint venture of TATA enterprise.

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.


Correct Option: D
Explanation:
Although joint ventures avail the benefit of reduction in cost, easy entry in overseas market etc., management of joint ventures lead to disagreement due to conflict in the thoughts of the parties involved. Small disagreement may prove healthy for the business as it will force management to evaluate its decision more carefully but if all parties are regularly not satisfied joint venture may lead to failure.

How many ways are there to establish a joint venture?

  1. 7

  2. 4

  3. 9

  4. 3


Correct Option: D
Explanation:

There are three ways to establish a joint venture. The equity joint venture, the contractual joint venture, licensing agreement.

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

  1. True

  2. False


Correct Option: A
Explanation:

A foreign investor and a local investor can form a joint firm, such type of a joint firm are known as international joint venture. Such kind of a joint venture are the easiest way to enter an international market.

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

  1. True

  2. False


Correct Option: B
Explanation:

A foreign investor and a local investor can form a joint firm, such type of a joint firm are known as international joint venture. Such kind of a joint venture are the easiest way to enter an international market.