A joint venture is an attractive way for a company to enter a new industry when:________.
A) the pool of attractive acquisition candidates in the target industry is relatively small.
B) it needs better access to economies of scope in order to be cost-competitive.
C) the industry is growing slowly and adding too much capacity too soon could create oversupply conditions.
D) the firm has no prior experience with diversification and the industry is on the verge of explosive growth.
E) the opportunity is too risky or complex for a company to pursue alone or when a company lacks some important resources or competencies and needs a partner to supply them.

Respuesta :

Answer:

Correct Answer:

E) the opportunity is too risky or complex for a company to pursue alone or when a company lacks some important resources or competencies and needs a partner to supply them.

Explanation:

A joint venture is a process by which two or more company come together by pooling resources together in-order to venture into a business which they have common interest in.