Strategic Alliances Are Normally Formed by Firms That Expect to Gain

question 79

Multiple Choice

Strategic alliances are normally formed by firms that expect to gain synergies from which of the following?

• A) economies of scale
• B) economies of scope
• C) complementary marketing
• D) all of the above

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Definitions:

Required Return

Required return is the minimum expected yield by investors to compensate for the risk of an investment.

Semiannual Compounding

Interest calculation method where interest is added to the principal sum of a loan or deposit twice a year.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date.

Zero-Coupon Bonds

Debt securities that are sold at a deep discount and do not pay periodic interest payments, but instead are redeemed at their face value at maturity.