An entrepreneur is most likely to form a joint venture if Blank______.Multiple choice question.entry into a new market or economy is hassle freeinexpensive technology needs to be used in a project run by the entrepreneurhis or her firm has a high degree of synergy with another firmhe or she has adequate financial resources necessary to engage in highly capital-intensive activities
Question
An entrepreneur is most likely to form a joint venture if Blank______.Multiple choice question.entry into a new market or economy is hassle freeinexpensive technology needs to be used in a project run by the entrepreneurhis or her firm has a high degree of synergy with another firmhe or she has adequate financial resources necessary to engage in highly capital-intensive activities
Solution
An entrepreneur is most likely to form a joint venture if his or her firm has a high degree of synergy with another firm.
This is because a joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture, each of the participants is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants' other business interests. Therefore, having a high degree of synergy would mean that the two firms can work together effectively and efficiently, making the joint venture more likely to be successful.
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