Identify and Explain at Least Two Drawbacks to Forming a Strategic

question 98

Essay

Identify and explain at least two drawbacks to forming a strategic alliance.

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Definitions:

Corporate Governance

The set of rules that controls a company's behaviour toward its directors, managers, employees, shareholders, creditors, customers, competitors, and community.

Independent Directors

Independent directors are members of a board of directors who do not have a material or pecuniary relationship with the company or its related entities, ensuring unbiased decision-making.

Board Size

Refers to the number of directors serving on a company's board, important for governance and strategic decision-making.

Poison Pill

Shareholder rights provisions that allow existing shareholders in a company to purchase additional shares of stock at a lower than market value if a potential acquirer purchases a controlling stake in the company.