Which of the following statements are true ? 1. Greenfield venturing is the establishment of a new…
Statements 2 and 3 are true: a joint venture may be formed for a specific project or business activity, and strategic-alliance partners retain their separate identities.…
Choose your answer
Which of the following statements are true ?
1. Greenfield venturing is the establishment of a new wholly owned subsidiary in a foreign country by constructing its facilities on an existing platform.
2. Joint venture is created for the purpose of a specific project or other business activity.
3. In strategic alliance, individual identities of the companies are retained.
Answer and explanation
Correct answer B
Statements 2 and 3 are true: a joint venture may be formed for a specific project or business activity, and strategic-alliance partners retain their separate identities. Greenfield venturing involves establishing new facilities rather than constructing them on an existing operational platform, so statement 1 is false.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)