Which of the Following Is NOT a Strategically Beneficial Reason

question 35

Multiple Choice

Which of the following is NOT a strategically beneficial reason why a company may enter into strategic partnerships or cooperative arrangements with key suppliers, distributors, or makers of complementary products?

• A) to improve access to new markets
• B) to expedite the development of promising new technologies or products
• C) to enable greater opportunities for employee advancement
• D) to improve supply chain efficiency
• E) to overcome disadvantages of small production volumes that limit scale economies and low production costs

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Definitions:

Franchisor

A person or company that grants the license to a third party for the conducting of a business under the franchisor's marks and methods.

Exclusive Territory

A designated geographic area where a specific party has the exclusive right to operate, sell, or perform services.

Manager-managed LLC

A form of Limited Liability Company (LLC) where management responsibilities are assigned to designated managers rather than all members.

Fiduciary Duties

Obligations that one party has to act in the best interest of another when managing assets or making decisions, typical in trustee-beneficiary, agent-principal, or director-shareholder relationships.