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) the 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) the firm 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) the firm has not built up a hoard of cash with which to finance a diversification effort.