Question

When a company invests in a foreign firm and holds active ownership of the firm, then the company is said to be in a joint venture with the foreign firm.

a. True
b. False?

Answer 1

Answer: FALSE

As the name suggests, a joint venture is a joint agreement between two or more parties or companies where both maintain their individuality. For example:
when a domestic company buys a part of a foreign company or joins with any foreign company or firm, both hold their equal rights in the new entity. In a joint venture the ownership is shared between the companies or firms.