A company decides to establish a relationship with a local company in order to better its business in a foreign country. The company must choose joint ventures ahead of mergers and acquisitions if it wants to ________
A) establish a company that is totally different
B) create a single management structure
C) create a unified business structure
D) establish a well-structured arrangement
E) avoid disrupting the original companies too much
Answer: E
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. In fact, after the spotty record of mergers and acquisitions in recent years, more companies are now considering joint ventures as a more attractive way to collaborate.
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A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas.
a. true b. false
Mr. Smith bought a property for $72,000 with a $20,000 cash down payment and a $52,000 loan. The loan did not require interest and did not require any payments for one year. One year later, he sold the property for double its purchase price. Each dollar of his original cash investment is now equal to:
A: $2.00; B: $4.60; C: $7.30; D: $9.20.