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Question

All of the following are claimed advantages of joint venture except.


A
The costs of a new project can be split between the companies involved
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B
Manufacturing costs will be divided between the firms in the venture
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C
Joint ventures between firms in different countries can create new market opportunities
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D
Management of the joint venture will never lead to disagreements
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Solution

The correct option is D Management of the joint venture will never lead to disagreements
A major joint venture advantage is that it can help your business grow faster, increase productivity and generate greater profits. Benefits of joint ventures include:
- access to new markets and distribution networks
- increased capacity
- sharing of risks and costs and liabilities with a partner
- access to greater resources, including specialised staff, technology and finance

Business Law

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