Reference no: EM132264541

1. Most JVs take the form of a __________.

limited partnership

public-private partnership

government agency

corporation

2. A public/private joint venture works best in countries with high levels of political instability.

False

True

3. There are three approaches to managing a JV:

1) Founding firms share management jointly

2) One founder takes primary responsibility

3) An independent team manages the JV

4. Which approach is most often preferred, and why?

3, because the independent team is focused on the success of the JV rather than its parents

 2, because it is less efficient to have one management team rather than two

1, because this management approach is legally required in most countries

1, because team management yields more ideas and thus higher profits

5. All of the following are potential pitfalls of strategic alliances EXCEPT

gaining of autonomy

distribution of earnings

changing circumstances

access to information