Advanced Audio and EQ Electronics recently established a joint venture for the purpose of cooperating in the design, production, and sale of a line of audio equipment. Executives at the two firms must now decide the best way to manage the joint venture. Which of the following choices would defeat the purpose of the joint venture?

Question

Quizplus · Accepted Answer

The purpose of a joint venture is to collaborate and share resources, including management efforts, to achieve a common goal. Continuing completely separate management activities would defeat the purpose of the joint venture, as it would not allow for the intended collaboration and shared decision-making.

Advanced Audio and EQ Electronics Recently Established a Joint Venture