Which of the Following Is Not a Characteristic of Strategic

question 65

Multiple Choice

Which of the following is not a characteristic of strategic alliances entered into to support related diversification?

• A)It is a way for companies to realize some of the benefits of diversification at a lower level of bureaucratic costs.
• B)It requires each company to take an equity stake in the new venture.
• C)A disadvantage is the risk of losing proprietary know-how to a competitor.
• D)It entails investing in a new business or product (including upgrades)instead of an existing one.
• E)It allows a company to swap complementary skills.