When a Multinational Adds a New Alliance to Its Alliance

question 30

True/False

When a multinational adds a new alliance to its alliance portfolio, the multinational's managers should remain focused upon the standalone value that the new alliance can generate, rather than being distracted by an assessment of whether the new alliance creates value from a portfolio perspective.

---

Definitions:

Agency Coupled

A legal arrangement where an agent has an irrevocable authority primarily for the agent's benefit, based on an interest in the subject matter of the agency.

Liable

Legally responsible or obligated to provide compensation for harm, loss, or damage caused.

Irrevocable

Unable to be changed, reversed, or recovered; final.

Competing

Engaging in a rivalry or competition with others in an attempt to achieve a specific goal, often referring to businesses vying in the same market or industry.