Which of the Following Is a Potential Benefit of Forming

question 40

Multiple Choice

Which of the following is a potential benefit of forming a strategic alliance?

• A)It primarily helps both firms in accomplishing their short-term operational goals.
• B)It enables one of the organizations in the alliance to gain a competitive advantage over the other.
• C)It leads to market expansion and greater penetration of current markets.
• D)It typically reduces the market risk of introducing a new product.

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Definitions:

Profitability

A financial metric used to assess the ability of a business to generate earnings compared to its expenses over a specific period.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Liabilities

Financial obligations or debts that a company owes to others.

Debt

Money owed by one party to another under the condition of repayment, often including interest charges.