When a Large Company and a Small Company Enter a Collaborative

question 8

Multiple Choice

When a large company and a small company enter a collaborative arrangement, ________.

• A)the large company is expected to contribute more to the arrangement
• B)the large company is likely to be more active in the venture
• C)the small company is more likely to view the collaboration's expansion as competition to itself
• D)the small company is likely to be disadvantaged if legal action is necessary to solve a dispute

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Securities Commission

A government agency or body responsible for regulating the securities industry and protecting investors.

Venture Capital

A form of private equity financing provided by investors to startups and small businesses with long-term growth potential.