For the Purpose of Diversification, a Corporate-Level Cooperative Strategy May

question 44

Multiple Choice

For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a merger or acquisition for all the following reasons EXCEPT:

• A) a host nation may forbid a merger or acquisition.
• B) opportunistic behaviors are less likely.
• C) cooperative strategies require fewer resources.
• D) cooperative strategies allow greater flexibility in diversifying the firm's portfolio.

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Definitions:

Justice Department

The United States federal executive department responsible for the enforcement of the law and administration of justice.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 that prohibits monopolistic and anticompetitive practices.

U.S. Exports

Goods, services, and technologies sent from the United States to other countries, contributing to trade balances and economic growth.

Eastman Kodak Co.

A renowned multinational corporation known for its extensive contributions to photography and imaging technology.