For Which of the Following Reasons Are Alliances in the Airline

question 45

Multiple Choice

For which of the following reasons are alliances in the airline industry unstable?

• A) Unstable industries make for unstable alliances.
• B) The potential for firms to take opportunistic actions is too widespread.
• C) The industry is declining and profits are not sufficient to divide among alliance partners.
• D) The alliances require cooperation among firms that must also compete with one another.

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Definitions:

Rate Of Interest

The percentage charged on a loan or paid on an investment over a specific period, usually annually.

Monthly Payments

Regular payments made once a month, typically in the context of loans or mortgages.

Loan

A sum of money borrowed by an individual, business, or other entity from a lender that is expected to be paid back with interest over a specified time period.

Compounded Monthly

Compounded monthly refers to the process of adding interest to the principal sum of a loan or deposit, where the interest that accrues is calculated and added monthly, leading to exponential growth.