Tag: organisation of commerce and management

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Questions Related to organisation of commerce and management

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

_______ 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
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Joint ventures allow companies to share resources, risks, and costs with a partner, which can facilitate growth without the need for external debt or equity financing.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

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
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A 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.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

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
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

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
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

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.
Reveal answer Fill a bubble to check yourself
D Correct answer
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.
Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

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

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

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

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

Multiple choice joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

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

  1. association

  2. joint venture

  3. merger

  4. alliance
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A joint Venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Examples of joint ventures include: Vodafone & Telefónica agreed to share their mobile network. BMW and Toyota co-operate on research into hydrogen fuel cells, vehicle electrification and ultra- lightweight materials. West Coast  joint venture between Virgin Rail & Stagecoach.