All of the Following Are Characteristics of Good Allies or Partners,except

question 37

Multiple Choice

All of the following are characteristics of good allies or partners,except:

• A)a good partner helps the firm achieve its strategic goals.
• B)a good partner shares the firm's vision for the purpose of the alliance.
• C)a good partner divulges all secrets of his organisation to you.
• D)a good partner is unlikely to try to opportunistically exploit the alliance for his or her own ends.

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Definitions:

Interest Tax Shield

The savings in taxes achieved by deducting interest payments on debt from taxable income.

Financial Risk

The possibility of losing money on an investment or business venture, usually due to changes in market conditions or poor financial management.

Levered Firms

Companies that use debt in addition to equity in their capital structure.

Unlevered Firms

Companies that operate without the use of borrowed money or financial leverage.