Which of the Following Statements Is True About Strategic Alliances

question 64

Multiple Choice

Which of the following statements is true about strategic alliances with suppliers?

• A) In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform.
• B) There is nothing as trust between the firm and its suppliers in strategic alliances.
• C) Strategic alliances are short-term relationships that benefit only the independent suppliers.
• D) In a strategic alliance the benefits arising from investments in specialized assets and vertical integration are lost.
• E) A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners.

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Definitions:

External Benefit

A benefit that affects parties other than the buyers or sellers involved in a transaction, similar to a positive externality.

Traffic Congestion

A condition on road networks that occurs as use increases, characterized by slower speeds, longer trip times, and increased vehicular queuing.

Externality

An externality is a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.

Pollution Reduction

The process or policy of decreasing the amount of pollutants released into the environment, often to protect ecological health and human safety.