Joint ventures ________
A) let companies create tightly integrated operations
B) are less risky than strategic alliances
C) are riskier to a firm than formal mergers
D) disrupt the original companies and their business
E) would not help companies gain credibility in new fields
Answer: A
Explanation: A joint venture lets companies create an operation that is more tightly integrated than a strategic alliance but without disrupting the original companies to the extent that a merger or acquisition does.
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