When Would an Entrepreneurial Firm Decide to Become an Alliance

question 23

Multiple Choice

When would an entrepreneurial firm decide to become an alliance partner of a foreign direct investor?

• A) When indirect exports exceed direct exports.
• B) When they may not be able to successfully defend their market positions.
• C) When innovation surpasses profits.
• D) After rapid internalization and successfully going abroad.

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Definitions:

Course of Employment

Refers to the range of activities employees are or can reasonably be expected to be engaged in as part of their job or while working.

Fiduciary Duty

An obligation to act in the best interest of another party, typically in financial matters.

Inducement

An offer or incentive designed to persuade or influence someone to act in a certain way.

Duty Not to Compete

A legal agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.