Joint Ventures

Q.

When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as___ .

1. Licensing

2. Franchising

3. Contract manufacturing

4. Joint Ventures

Q.

Which one of the following modes of entry requires higher level of risks?

1. Franchising

2. Licensing

3. Contract manufacturing

4. Joint venture

Q.

Which of the following is the best explanation of a joint venture?

1. A general business partnership.

2. A partnership of businesses formed to engage in a short term business venture together.

3. A group of two or more persons or entities that come together on a temporary basis to pursue a joint business activity for profit.

4. The merging of two or more businesses to pursue a business venture.

Q. Long answer questions.

What is Joint Venture? Explain its benefits.

Q. A means establishing a firm which is jointly owned by two or more independent firms.

1. MNC
2. joint venture
3. partnership
4. business

Q.

Which of the following statements is/are correct?

1. Suzuki Motor Corporation is a Japanese company.

2. Maruti - Suzuki is a Joint Venture.

1. Both statements are incorrect.

2. Both statements are correct

3. Only statement 1 is correct

4. Only statement 2 is incorrect

Q.

A particular partnership

1. is voidable

2. Will stand dissolved when the adventure is completed

3. is void

4. should be entered between three people

Q. Write short answer to the followings.

State the benefits of Joint venture.

Q. The entrepreneur can go ahead with actual launching of the enterprise with starting the ___ process.

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

1. True
2. False

Q.

In joint ventures, the risk of entering foreign markets is shared by the partner firms.

1. True

2. False

Q. According to whom "The entrepreneurship is essentially a creative activity or it is an innovative function"?

1. Schumpeter
2. Joseph Schumpeter
3. Peter Drucker
4. Dr. Marshal

Q.

Innovation and low cost to production are two of the unique features of Joint Ventures.

1. True

2. False

Q. Long Answer Type Questions: Explain the features of joint venture.

Q.

Risk-sharing is a feature of which of the following modes of entry?

1. None of these

2. Wholly owned subsidiaries

3. Joint ventures

4. Export and import

Q. When investments in production and marketing facilities are made jointly with one or more foreign parties, such an operation is known as .

1. FDI
2. Joint venture
3. MNC

Q. State with reasons whether the following statements are True or False.

Joint venture increases 'Entry Risk' for any foreign company.

Q.

1. underwriters
2. promoters
3. directors
4. None of these

Q. Joint Venture means _______.

1. co-existence of Private Company and Government Company
2. joining up of two or more companies for specific objectives
3. co-existence of traditional society and modern society
4. co-existence of firm and industry

Q. Which of the following are risks for entrepreneurs in small business?

1. Interference with personal lives
2. Psychological stress
3. Social and family pressure
4. All of the above

Q. has a comparatively higher level of risk.

1. Licensing
2. Franchising
3. Joint Venture
4. MNC

Q. Identify the association which exists between 'Maruti' company of India and Japanese Inc. 'Suzuki'. What document is prepared to establish their business terms?

Q. What is meant by Joint venture?

Q. When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as :

1. Licensing
2. None of the above
3. Joint venture
4. Franchising

Q. Joint venture helps in access to new markets and distribution networks.

1. True
2. False

Q. ___ investment means one company invests in another companies by way of investing in its securities and earn income in form interest and dividends.