Which of the Following Statements About Strategic Alliances Is Most

question 80

Multiple Choice

Which of the following statements about strategic alliances is most true?

• A) It is a long-term partnership between two or more companies to help each company build competitive market advantages
• B) Strategic alliances can provide access to markets, capital and technical expertise
• C) Usually risks, costs, management or profits are not shared between the firms
• D) All of the responses are correct

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Definitions:

Bad Debt Expense

The cost associated with accounts receivable that is not expected to be collected.

Quality of Income

A measure of the conservatism of a company's earnings with respect to its ability to generate cash flows, indicating the robustness of earnings.

Net Profit Margin

A financial performance ratio, expressed as a percentage, calculating the amount of net income generated as a portion of revenues.

Unearned Revenue

money received by an entity for a service or product to be delivered or performed in the future.