Which of the Following Is the Best Definition of a Strategic

question 176

Multiple Choice

Which of the following is the best definition of a strategic alliance?

• A) Combinations of firms that have been joined by merger, consolidation, or acquisition.
• B) A public offer by one firm to directly buy the shares from another firm.
• C) The positive incremental net gain associated with the combination of two firms through a merger or acquisition.
• D) Agreement between firms to cooperate in pursuit of a joint goal.
• E) Corporate takeover bid communicated to the shareholders through a stock exchange.

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Definitions:

SEC Rule 12b-1

A regulation by the U.S. Securities and Exchange Commission that allows mutual funds to charge their shareholders for advertising and sales promotion expenses.

Marketing Expenses

Costs associated with promoting a company, product, or service, including advertising, product samples, and event sponsorships.

Fund Assets

The total value of all the securities and cash held by an investment fund.

Exchange-traded Fund

A type of investment fund and exchange-traded product, i.e., they are traded on stock exchanges. ETFs hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep it trading close to its net asset value.