Final answer:
A drawback of joint ventures is their characteristic of double reporting lines, which create complexity and potential conflicts due to dual management structures. This stands in contrast to the personal liability issues and limited lifespan of general partnerships or the stress of mergers and acquisitions.
Step-by-step explanation:
A drawback of joint ventures is that they are characterized by double reporting lines. This disadvantage stems from the complexity of having two sets of management or higher-level supervision drawn from the partnering firms. Unlike involuntary mergers, which are not a characteristic of joint ventures, double reporting results when employees answer to two different managers or management teams.
In a general partnership, each partner is responsible for the business's debts, and there's a personal liability that could lead to loss of personal assets in case of bankruptcy or lawsuit. When it comes to mergers and acquisitions, the primary stress is typically based on integrating cultures, potential job losses during staff reductions, and navigating the resultant organizational changes.
The joint venture's drawback of double reporting lines can add complexity, reduce efficiency, and create potential conflicts arising from differing corporate cultures or strategies between the partner companies.