Strategic Alliances Are More Likely to Be Long Lasting-When

question 32

Multiple Choice

Strategic alliances are more likely to be long lasting-when

• A)they involve collaboration with suppliers or distribution allies or when both parties conclude that continued collaboration is in their mutual interests.
• B)the alliance involves partners based in countries with distinctly different cultures and consumer buying habits and preferences.
• C)both partners are experienced with strategic alliances and routinely enter into collaborative agreements with firms in peripheral industries.
• D)the alliance involves joining forces in R&D to develop new technologies cheaper than a company could develop the technology on its own.
• E)each partner has considerable resource weaknesses in the marketplace.

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Definitions:

Held Primarily

Indicates that the main reason for holding an asset or investment is for a specific purpose, not necessarily for immediate sale.

Amortized Book Value

The adjusted book value of an asset after accounting for amortization expenses.

Bond Investment

The act of investing in bonds, which are debt securities issued by entities to raise capital, offering fixed income over time.

Unrealized Gains

Increases in the value of an asset that has not been sold, and therefore, the gains are not yet realized as income.