A Financial Alliance Is Formed Primarily for the Purpose of ________

question 73

Multiple Choice

A financial alliance is formed primarily for the purpose of ________.

• A) performing multiple tasks as quickly as possible
• B) sharing a common manufacturing facility
• C) generating technological change
• D) reducing investment risks

---

Definitions:

Fixed Resources

Assets and inputs in production that remain constant regardless of the level of output.

Diseconomies of Scale

A condition in which a firm experiences an increase in average costs as it increases its output, due to factors such as inefficiencies or complexity.

Marginal Product

The change in total output that results from the employment of one additional unit of a resource.

Marginal Cost

Represents the change in total production costs resulting from making one additional unit of a product or service.