The Achilles' Heel (Or Biggest Disadvantage/pitfall)of Relying Heavily on Alliances

question 2

Multiple Choice

The Achilles' heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is

• A)that partners will not fully cooperate or share all they know, preferring instead to guard their most valuable information and protect their more valuable know-how.
• B)becoming dependent on other companies for essential expertise and capabilities.
• C)the added time and extra expenses associated with engaging in collaborative efforts.
• D)having to compromise the company's own priorities and strategies in reaching agreements with partners.
• E)the collaborative arrangements will not live up to expectations.

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Definitions:

Functional Currency

The primary currency used by a business or unit in its financial statements, reflecting the economic environment in which it primarily operates.

Income Tax Expense

The total amount of income tax a company is obligated to pay to governmental authorities based on its taxable income.

Functional Currency

The currency of the primary economic environment in which the entity operates, typically the currency in which an entity primarily generates and expends cash.

Foreign Subsidiary

A company owned or controlled by another company that is based in another country.