Which of the Following Is NOT a Typical Reason That

question 95

Multiple Choice

Which of the following is NOT a typical reason that many outsourcing alliances prove unstable or break apart?

• A) Anticipated gains may fail to materialize due to an overly optimistic view of the synergies.
• B) Anticipated gains may fail to materialize due to a poor fit in terms of the combination of resources and capabilities.
• C) A partner can gain access to a company's proprietary knowledge base, technologies, or trade secrets.
• D) The partners may disagree over how to divide the profits gained from joint collaboration.
• E) There is a risk of becoming dependent on other companies.

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Definitions:

Firm Offer

A proposal in contract law that explicitly states it will remain open for a specified period of time and cannot be revoked during that period.

UCC

This code, known as the Uniform Commercial Code, is an extensive assortment of legal rules that supervise commercial exchanges in the United States.

Common Law

A legal system characterized by case law and legal precedents established by court decisions, as opposed to statutory laws enacted by governmental bodies.

Consideration

The benefit, interest, right, or profit that induces a party to enter into a contract; a fundamental component of a valid contract.