Quantum Inc

question 36

Multiple Choice

Quantum Inc. and Cosmic Corp often compete with one another in the marketplace. A new business area is emerging that appeals to both firms. However, organizations that will successfully compete in the new business area will need to have a robust laboratory capability as well as an established construction capability. Quantum has the former, and Cosmic has the latter. Although unusual for two competitors, they negotiate and create a(n) ________. Under the terms of this agreement, Quantum and Cosmic formally and jointly pursue their mutual goals.

• A) merger
• B) strategic alliance
• C) acquisition
• D) vertical integration
• E) related diversification

---

Definitions:

State of Tension

A psychological and physiological condition characterized by feelings of unease or stress that can motivate behavior to relieve this discomfort.

Incongruent

Describes something that is not in harmony or consistent with something else, often leading to cognitive dissonance.

Stanley Milgram

A psychologist known for his research on obedience, demonstrating how people are willing to follow orders from authority figures, even to the extent of harming others.

Obedience

The act of following orders or instructions from an authority figure.