Which of the Following Is Not One of the Factors

question 54

Multiple Choice

Which of the following is not one of the factors that affects whether a strategic alliance will be successful and realize its intended benefits?

• A) Picking a good partner
• B) Recognizing that the alliance must benefit both sides
• C) Minimizing the amount of resources that the partners commit to the alliance
• D) Ensuring that both parties live up to their commitments
• E) Structuring the decision-making process so that actions can be taken swiftly when needed

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Definitions:

Exchange Gain

A profit resulting from holding or transacting in foreign currencies as exchange rates vary.

Spot Rate

The existing selling or buying price of a certain currency for transactions that are completed right away.

Fair-Value Hedge

A hedge that is used to mitigate the risk of changes in the fair value of an asset, liability, or an unrecognized firm commitment.

Cost of the Hedge

The expenditure associated with implementing and maintaining a hedge against financial risk.