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Questions Related to public sector, private sector and global enterprises

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

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

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

joint venture is an arrangement in which two or more companies or parties join forces to engage in a specific business activity. The most common reasons for businesses to decide to enter into a joint venture include gaining access to new markets, increasing market power, and sharing resources.

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

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

  1. True

  2. False

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

All joint ventures in India require government approval if a foreign partner or a NRI is involved. The approval can be obtained either from the Reserve bank of India or Foreign Investment Promotion Board depending upon particular circumstances. 

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

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

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

When an Indian company joint with a foreign company it is benefited with the increased financial and human resources. Also advanced technology adds to effeciency and effectiveness. Established brand name also saves a lot of investment. 

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

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

  1. True

  2. False

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

joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and, of course, profits. A joint venture differs from a merger in the sense that there is no transfer of ownership in the deal.

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 can be done between _____________.

  1. government companies

  2. private companies

  3. international companies

  4. all of the above

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

joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and, of course, profits. A joint venture differs from a merger in the sense that there is no transfer of ownership in the deal since the joint venture is not a legal entity, it does not enter into contracts, hire employees, or have its own tax liabilities. These activities and obligations are handled through the co-venturers directly and are governed by contract law.

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

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

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

When two businesses enter into a joint venture one of the parties benefits from the other's goodwill which has already been established in the market. A lot of investment is saved in this process of using the established brand name.

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

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

  1. True

  2. False

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

Jaugar & Land Rover are  British multinational car manufacturer brand headquartered in Whitley, England is owned by the Indian company Tata Motors since 2008. On June 2, 2008, the sale to Tata was completed at a cost of 1.7 billion pounds. A new assembly plant was also opened at Pune in April 2011.

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

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

  1. True

  2. False

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

It is becoming increasingly common for companies to create joint ventures with other companies and form strategic alliances with them. The reasons for these alliances may be complementary capabilities and resources such as distribution channels, technology or finance. 

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

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

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

Joint ventures has various benefits. Joining hands with another adds too existing resources and capacity to grow and expand more quickly and efficiently. It also opens up a vast growing market and distribution channels. Advanced technology also adds to the effeciency and effectiveness. 

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

Which among the following is a competitive advantage that a firm gains through R&D?

  1. It is not suitable for small firms.

  2. Increase in man-hours spent.

  3. An idea that rivals cannot be easily replicated.

  4. It is fruitful only in the long run.

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

Firms invest in R&D because they want to grow by developing new products. It's hard for a company to remain competitive if it does not stay ahead of the technology curve.The RQ can tell firms (and investors) the increase in revenue and market value they can expect from an increase in R&D spending.