Which of the Following Is NOT a Reason Companies or Business

question 39

Multiple Choice

Which of the following is NOT a reason companies or business units may form a strategic alliance?

• A)To obtain technological and/or manufacturing capabilities.
• B)To reduce financial risk.
• C)To reduce political risk.
• D)To set prices in the industry.
• E)To learn new capabilities.

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Definitions:

Perfectly Competitive Industry

A theoretical market structure characterized by unlimited buyers and sellers, homogeneity of products, and no barriers to entry or exit, leading to optimal pricing and efficiency.

Industry Supply

The total quantity of a particular good or service that is available for purchase in a market by all producers.

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand forces in the market.

Perfect Competition

A market structure characterized by many sellers and buyers, homogeneous products, and free entry and exit, leading to optimal prices.