What are the advantages and disadvantages of joint ventures?
What will be an ideal response?
The advantages of a joint venture include gaining local knowledge of the economic, social, and political landscape while sharing the costs and risks of accessing a foreign market. The disadvantage of a joint venture is losing control over the company because compromise with the partner is inevitable. The risk of losing proprietary technology in the event of dissolution or "divorce" of the joint venture is also a major drawback.
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The Designer Company issued 10-year bonds on January 1 . The 6% bonds have a face value of $800,000 and payinterest every January 1 and July 1 . The bonds were sold for $690,960 based on the market interest rate of8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1, of the firstyear, Designer should record interest expense (round to the nearest
dollar) of a. $27,638 b. $24,000 c. $48,000 d. $55,277
If collection of accounts receivable is assured, then accounts receivable are considered to be cash equivalents
a. True b. False Indicate whether the statement is true or false
Normally, cash flows from operations will peak during which phase of the product life cycle?
a. Introduction b. Growth c. Maturity d. Decline
Amortization is the process of allocating the cost of natural resources to periods when they are consumed.
Answer the following statement true (T) or false (F)