Which of the Following Is False Regarding a Strategic Alliance

question 22

Multiple Choice

Which of the following is false regarding a strategic alliance?

• A) A strategic alliance is an arrangement between two or more companies in the same industry, in which the companies agree to ally themselves to accomplish a designated objective.
• B) A strategic alliance allows the companies to share costs and combine technologies.
• C) Companies often enter into a strategic alliance when they decide to expand internationally into a foreign country.
• D) A strategic alliance resembles a corporation in terms of its legal formation requirements, organizational structure, and business purpose.
• E) A strategic alliance partner is a potential competitor.

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