A joint venture:
A) offers the lowest risk and requires the least investment
B) increases the entrant's risks
C) involves a retail firm investing in and owning a division or subsidiary that builds and operates stores in a foreign country
D) is formed when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared
E) is NONE of these

Question

Quizplus · Accepted Answer

A joint venture is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, such as entering a new market. In this context, it involves a foreign retailer partnering with a local retailer to form a new company, sharing ownership, control, and profits.

A Joint Venture