A Joint Venture Is an Attractive Way for a Company

Multiple Choice

A joint venture is an attractive way for a company to enter a new industry when

A) a firm is missing some essential skills or capabilities or resources and needs a partner to supply the missing expertise and competencies or fill the resource gaps.
B) it needs access to economies of scope and good financial fits in order to be cost-competitive.
C) it is uneconomical for the firm to achieve economies of scope on its own initiative.
D) the firm has no prior experience with diversification.
E) it has not built up a hoard of cash with which to finance a diversification effort.