Which of the Following Is NOT a Factor That Makes

question 62

Multiple Choice

Which of the following is NOT a factor that makes an alliance "strategic" as opposed to just a convenient business arrangement?

• A) The alliance is critical to the company's achievement of an important objective.
• B) The alliance helps block a competitive threat.
• C) The alliance helps open up important new market opportunities.
• D) The alliance helps build, enhance, or sustain a core competence or competitive advantage.
• E) The alliance helps the company obtain additional financing on better credit terms.

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Definitions:

Retention for Investment

The practice of holding back a portion of earnings or profits for reinvestment in the business, rather than distributing them as dividends.

Disposition of Earnings

Decisions made by a company regarding the allocation of its net income, including dividends distribution and retained earnings.

Cash Payment

A transaction in which money (in the form of cash) is given by one party to another in exchange for goods, services, or to settle a debt.

Signaling Effect

The phenomenon where actions by a company provide clues or signals to the market about its potential performance or financial health.