Which of the Following Is a Potential Benefit of Forming

question 16

Multiple Choice

Which of the following is a potential benefit of forming a strategic alliance?

• A) The assurance that the new product developed through the alliance will be successful.
• B) One of the organizations in the alliance will gain a competitive advantage over the other.
• C) It will lead to market expansion and greater penetration of current markets.
• D) It typically reduces the market risk of introducing a new product.

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Definitions:

Rate of Return

Rate of Return is a measure of the profitability of an investment, calculated as the percentage of the total amount returned in relation to the original investment made.

US Dollar

The official currency of the United States, widely used as a standard unit of currency in international finance and trade.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.

Exchange Rate

The worth of one currency when converting it into another currency.