Which of the Following Is NOT Considered a Strategic Alliance

question 34

Multiple Choice

Which of the following is NOT considered a strategic alliance success factor?

• A) Have a clear strategic purpose.
• B) Operate with short-term time horizon.
• C) Agree on an exit strategy for when the partners' objectives are achieved or the partnership fails.
• D) Minimize conflicts among the partners by clarifying the objectives.
• E) Identify likely partnering risks and deal with them when the alliance is formed.

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Definitions:

Static Model

A fixed scenario analysis tool that assumes no change in variables over time when evaluating economic conditions or investment outcomes.

Depreciation Write-Off

The accounting process of allocating the cost of tangible assets over their useful lives to account for declines in value.

Weighted Average Cost

A calculation that takes into account the varying costs and quantities of resources or components, producing a composite average cost.

Earnings Before Interest

Earnings before interest is a measure of a company's profitability that calculates earnings before the expense of interest is deducted; it’s part of the calculation used for EBIT (earnings before interest and taxes).