When a firm's managers are very concerned about the possibility of losing control of proprietary know-how,which entry mode should the firm avoid?
A) Acquisition
B) Internal new venture
C) Joint venture
D) Divestiture
E) Merger

Question

Quizplus · Accepted Answer

Joint ventures involve sharing ownership and control with another company, which can increase the risk of losing proprietary know-how to the partner. Therefore, a firm's managers who are very concerned about the possibility of losing control of proprietary know-how should avoid joint ventures as an entry mode.

When a Firm's Managers Are Very Concerned About the Possibility