Which of the Following Statements Is True of Strategic Alliances

question 100

Multiple Choice

Which of the following statements is true of strategic alliances?

• A) They are always focused on joining the same value chain activities.
• B) They enable firms to achieve goals faster, but at higher costs.
• C) They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage.
• D) They are most beneficial when they join together resources and knowledge in a combination that obeys the VRIO principles.

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Definitions:

Setup Cost

The initial expenses incurred in preparing a machine or process for production, typically including costs associated with configuring equipment and labor.

Carrying Cost

Costs related to the storage or maintenance of inventory for a duration, encompassing warehouse storage fees, insurance premiums, value depreciation, and the potential loss of other opportunities.

Reorder Point

The inventory level at which an order is triggered to replenish stock before it runs out.

Order Quantity

The amount of goods a company decides to purchase or produce in a single order.