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
• B. Manufacturing costs will be divided between the firms in the venture
• C. Joint ventures between firms in different countries can create new market opportunities
• D. Management of the joint venture will never lead to disagreements

Answer 1

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