A Risk for a Small Firm Creating a Strategic Alliance

question 22

Multiple Choice

A risk for a small firm creating a strategic alliance with a larger company is

• A) not being able to keep up with the fast speed of a large company.
• B) not having enough creative talent to join forces effectively.
• C) being squeezed financially.
• D) being too rigid for a large company's standards.

Identify the various sources of funding available to firms and the implications of each.

Understand the concept of leverage and its effects on shareholder returns and investment risk.

Understand different theories and constructs of intelligence.

Identify and differentiate between various intelligence tests and their application.

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Definitions:

Operating Segment

A distinct business unit within a company for which separate financial information is available and regularly reviewed by the company's management.

Operating Profit

The profit earned from a firm's normal business operations, calculated before interest and taxes.