A Strategic Alliance Differs from a Joint Venture in That

question 64

Multiple Choice

A strategic alliance differs from a joint venture in that a strategic alliance:

• A) occurs when goods and services offered by two or more organizations under different brands are located very close to each other.
• B) is a cooperative arrangement that involves two or more organizations sharing only control of the operations.
• C) is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity.
• D) refers to a blending of competition and cooperation between two firms.
• E) is a cooperative arrangement that involves two or more organizations, each contributing to the creation of a new entity.

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Definitions:

Market-To-Book Ratio

A financial ratio used to compare a company's current market price to its book value, providing insight into the value the market places on a company’s equity.

Return On Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how well the company uses investments to generate earnings growth.

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is used.

Financial Flexibility

The ability of an organization to adapt its financing and investment strategies in response to changes in the marketplace or its own operations.