Which of the Following Best Describes a Strategic Alliance

question 35

Multiple Choice

Which of the following best describes a strategic alliance?

• A)It is a long-term partnership between two organizations designed to accomplish the strategic goals of both parties.
• B)It is a collaboration of two different departments within an organization to implement the organization's strategic plan.
• C)It is a team consisting of members from different functional areas of an organization that work together to solve a strategic issue.
• D)It is an alliance with experts outside an organization who are called in to help the organization generate new product ideas.

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Definitions:

Monopolistically Competitive Industry

An economic configuration in which numerous companies offer products that are alike but not exactly the same, permitting them a certain level of influence over the market.

Slightly Differentiated Product

A product that is mostly similar to others but has minor differences in quality, features, or branding that set it apart.

Natural Monopoly

A market situation where due to high fixed costs or barriers to entry, it is most efficient for production to be concentrated in a single firm.

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.