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An Indian company has entered into Joint Venture with Australian Company in order to set up its new production unit in Australia. Identify the factor affecting fixed capital decision discussed above.
  • a)
    Technology upgradation
  • b)
    Financing alternatives
  • c)
    Scale of operation
  • d)
    Level of collaboration
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
An Indian company has entered into Joint Venture with Australian Compa...
The companies that prefer collaborations or joint ventures need less fixed capital as these companies can share plants and machinery with the collaborators. However, if a company prefers to operate its business as an independent unit, then it will require more fixed capital.
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An Indian company has entered into Joint Venture with Australian Company in order to set up its new production unit in Australia. Identify the factor affecting fixed capital decision discussed above.a)Technology upgradationb)Financing alternativesc)Scale of operationd)Level of collaborationCorrect answer is option 'D'. Can you explain this answer?
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