Question

Five Bucks prefers to maintain greater control afforded by ________ and is willing to take on greater financial risk to continue its global expansion into India. By doing so, however, Five Bucks will also have to share the profits.

Answer 1

Joint Venture

Step-by-step explanation:

Joint Venture is the business arrangement, wherein two or more business entity come together for a specific project. These ventures are short term and long term. Different business entity join together to form a seperate business entity and they contribute their assets to manage a new entity. Under the joint venture agreement, they share management, profits and losses.

Joint venture are formed for multiple reason:

• Different business work together to combine resources for the success of project.
• Joint venture also save money in the project as two or more company come together and share their assets and expenses.
• Joint venture are formed to combine technical or non technical expertise of each other, which help in the success of project.
• It also reduce the risk of one company doing the business.

Therefore, Five Bucks prefers to maintain greater control afforded by Joint Venture.