SAIC General Motors Corporation Limited is a joint venture between General Motors Company and SAIC Motor that manufactures and sells Chevrolet, Buick, and Cadillac brand automobiles in mainland China. SAIC Motor Corporation Limited is a Chinese state-owned automotive design and manufacturing company. One advantage of this arrangement is that ...

a. each partner carries part of the burden of costs to start and run the joint companyb. General Motors and SAIC can independently measure their contributionsc. each partner bears the cost of running a business

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Alannah

Business

2 July, 07:52

SAIC General Motors Corporation Limited is a joint venture between General Motors Company and SAIC Motor that manufactures and sells Chevrolet, Buick, and Cadillac brand automobiles in mainland China. SAIC Motor Corporation Limited is a Chinese state-owned automotive design and manufacturing company. One advantage of this arrangement is that ...

a. each partner carries part of the burden of costs to start and run the joint companyb. General Motors and SAIC can independently measure their contributionsc. each partner bears the cost of running a business

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Ernesto Floyd · Answer 1

C) each partner bears the cost of running a business

Explanation:

One of the main advantages of setting up a joint venture is that both parties share the costs of setting up the new enterprise and share the business risks associated with the new enterprise.

The same way the companies share the costs and risks, they will also share the benefits of the new enterprise. In this case they will share the profits, reduce costs though economies of scale and possibly exchange new technologies.