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:

Causal Chain

A sequence of events where each event is the result of the preceding one and causes the next.

Unforeseeable Event

An event that cannot be anticipated or predicted with reasonable accuracy.

Implied Assumption

An unstated understanding or expectation inherent in a situation or agreement.

Known Risk

A hazard or risk that is identified or anticipated before an activity or decision is made.