Tag: joint ventures

Questions Related to joint ventures

All joint ventures in India require government approvals if a foreign partner or NRI is involved.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

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Correct Option: A
Explanation:

All joint ventures in India require government approval if a foreign partner or a NRI is involved. The approval can be obtained either from the Reserve bank of India or Foreign Investment Promotion Board depending upon particular circumstances. 

Indian companies when join with an international company, they are benefited with ____________.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Technological advancements

  2. Increased resources

  3. Brand name

  4. All of the above

Show answer
Correct Option: D
Explanation:

When an Indian company joint with a foreign company it is benefited with the increased financial and human resources. Also advanced technology adds to effeciency and effectiveness. Established brand name also saves a lot of investment. 

A joint venture can also be a result of agreement between two companies in two different countries.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

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Correct Option: A
Explanation:

A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and, of course, profits. A joint venture differs from a merger in the sense that there is no transfer of ownership in the deal.

Joint venture can be done between _____________.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. government companies

  2. private companies

  3. international companies

  4. all of the above

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Correct Option: D
Explanation:

A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and, of course, profits. A joint venture differs from a merger in the sense that there is no transfer of ownership in the deal since the joint venture is not a legal entity, it does not enter into contracts, hire employees, or have its own tax liabilities. These activities and obligations are handled through the co-venturers directly and are governed by contract law.

When two businesses enter into a joint venture, one of the parties benefits from the others goodwill which has already been established in the market.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

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Correct Option: A
Explanation:

When two businesses enter into a joint venture one of the parties benefits from the other's goodwill which has already been established in the market. A lot of investment is saved in this process of using the established brand name.

When an international company joins an Indian company, they gain access to the vast Indian market.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

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Correct Option: A
Explanation:

Jaugar & Land Rover are  British multinational car manufacturer brand headquartered in Whitley, England is owned by the Indian company Tata Motors since 2008. On June 2, 2008, the sale to Tata was completed at a cost of 1.7 billion pounds. A new assembly plant was also opened at Pune in April 2011.

It is becoming increasingly common for companies to create joint ventures with other companies and form strategic alliances with them.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

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Correct Option: A
Explanation:

It is becoming increasingly common for companies to create joint ventures with other companies and form strategic alliances with them. The reasons for these alliances may be complementary capabilities and resources such as distribution channels, technology or finance. 

Which of the following are benefits of a joint venture form of company?

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Increased resources and capacity

  2. Access to new markets and distribution networks

  3. Access to technology

  4. All of the above

Show answer
Correct Option: D
Explanation:

Joint ventures has various benefits. Joining hands with another adds too existing resources and capacity to grow and expand more quickly and efficiently. It also opens up a vast growing market and distribution channels. Advanced technology also adds to the effeciency and effectiveness. 

Which among the following is a competitive advantage that a firm gains through R&D?

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. It is not suitable for small firms.

  2. Increase in man-hours spent.

  3. An idea that rivals cannot be easily replicated.

  4. It is fruitful only in the long run.

Show answer
Correct Option: C
Explanation:

Firms invest in R&D because they want to grow by developing new products. It's hard for a company to remain competitive if it does not stay ahead of the technology curve.The RQ can tell firms (and investors) the increase in revenue and market value they can expect from an increase in R&D spending.

Which of the following can be seen as a part of commercial firm's intellectual property?

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Scientists employed by an Atomic Research Centre.

  2. Technology breakthrough at a state funded university.

  3. Expenditure on R&D.

  4. A Brand name.

Show answer
Correct Option: D
Explanation:

Brands today are generally recognized as a key asset for creating value for a business. Any “enterprise”, in the wide sense of that term, be it for-profit, not-for-profit, small, medium-sized or large, even a country or geographical region, can develop a brand image. The potential commercial value of a brand cannot be underestimated. The brand is the central nexus of communication between an enterprise and its consumers.