Which of the Following Is Disadvantage of Strategic Alliances

question 11

Multiple Choice

Which of the following is disadvantage of strategic alliances?

• A)They give competitors a low-cost route to new technology and markets.
• B)They do not facilitate entry into a foreign market.
• C)They do not allow for sharing of risks and fixed costs.
• D)They mandate that the companies do not share complementary skills and assets.
• E)They cause problems when it comes to establishing technological standards for the industry.

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Definitions:

Loanable Funds

Funds available for borrowing, which consist of household savings and international capital flows.

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Withdrawals

Money or resources taken out from a system, economy, or savings for various purposes, reducing the total available amount.