Why Do Businesses Typically Enter into Strategic Alliances

question 156

Multiple Choice

Why do businesses typically enter into strategic alliances?

• A) to gain access to global markets
• B) to achieve economies of scale
• C) to facilitate entry of new products to old markets
• D) to share political risks

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Definitions:

Inventory Period

The time span between purchasing goods for sale and their eventual sale to customers.

Restrictive Financial Policies

Restrictive financial policies are measures implemented by a company to maintain financial stability and discipline, often involving limits on capital spending, borrowing, and dividend distributions.

Current Asset Management

The practice of managing a company's short-term assets and liabilities to ensure it has sufficient liquidity to run its operations efficiently.

Pro Forma Cash Budgets

Projected budgets that estimate the inflow and outflow of cash to a business over a specified period, used for planning purposes.