The Four Safeguards Against Opportunism by Alliance Partners Include

question 42

Multiple Choice

The four safeguards against opportunism by alliance partners include:

• A) retaining a CPA to audit the alliance's books, agreeing to share valuable skills and technologies, seeking credible commitments, and shared leadership in alliance activities
• B) walling off critical technology, establishing contractual safeguards, agreeing to swap valuable skills and technologies, and seeking credible commitments
• C) restricting the alliance to activities outside the partner's distinctive competencies, maintaining an atmosphere of secrecy, shared leadership in alliance activities, and seeking credible commitments
• D) establishing contractual safeguards, maintaining an atmosphere of secrecy, retaining a CPA to audit the alliance's books, and shared leadership in alliance activities
• E) ensuring partner selection is right, restricting technical knowledge to loyal employees, signing a comprehensive contract, and ensuring equal power sharing

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Definitions:

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal repairs and maintenance, for its intended purpose.

Cash Payback Period

The duration it takes for an investment to generate an amount of cash equal to the initial investment cost.

Salvage Value

The estimated residual value of an asset at the end of its useful life, representing what it could be sold for or its scrap value.

Straight-Line

A depreciation method that equally spreads the cost of an asset over its useful life.