Excessive Optimism Kills Joint Ventures
Electronic Accountant Online (08/14/00) No. 3696 p.230; Nicholson, Jonathan

When joint ventures and strategic alliances between CPA firms fail, overly optimistic expectations are often the main cause, according to "Joint Ventures: Business Strategies for Accountants" author Robert P. Lynch. In an interview in the August 7-20 issue of Accounting Today, Lynch urges firms to exercise caution before embarking on joint ventures. He also cites poor communication and inadequate sharing of risks and rewards as key reasons why ventures may fail. Nonetheless, Lynch sees a bright future for joint ventures and alliances, referring to a study that predicts alliances or joint ventures will account for 40 percent of the world's business by 2010.

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