A joint venture arrangement usually involves all of the following EXCEPT: A) pooling resources. B) sharing risks. C) jointly operating the venture. D) one firm buying out the other firm.

Question

Quizplus · Accepted Answer

A joint venture arrangement involves partnering firms pooling resources, sharing risks, and jointly operating the venture. The concept of one firm buying out the other goes against the idea of a joint venture, as it would result in one firm owning and controlling the venture. Hence, option D is not a characteristic of a joint venture.

A Joint Venture Arrangement Usually Involves All of the Following