DDD Partners, a U

question 59

Multiple Choice

DDD Partners, a U.S.business consulting firm is considering a cooperative alliance with an Indian business consulting firm that has a wide practice in the Middle East and Asia.DDD has some European clients, but it sees the Middle East and Asia as growth opportunities.It hopes to learn how to navigate the different cultures and business practices in this part of the world from its alliance with the Indian firm.DDD's greatest risk here is that the Indian firm will:

• A) insist on excessively close monitoring of DDD's actions.
• B) gain access to DDD's core competencies and use them to become a future competitor.
• C) not fully share its intangible resources.
• D) not make equivalent investments to the alliance as does DDD.

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Definitions:

Retirement Fund

A savings plan or account that is set aside for the purpose of supporting an individual financially during their retirement.

Deferred Annuity

An insurance product that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Compounded Annually

Interest calculation where the interest is added to the principal sum so that the added interest also earns interest from then on, done once a year.

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal sum each month, leading to an increase in the amount of future interest earned.