Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. B. increased external visibility B. Misrepresentation D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. They are always focused on joining the same value chain activities. In this case, which of the following contractual alliances should be adopted by Sepia? To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. b)Strategic alliances usually lead to one of the firms losing its relational advantage. They limit the entry of firms into foreign markets. B. subsidiary company that it wants. It tends to involve more short-term commitments than licensing. WebChapter 8 - Multiple Choice - Chapter 8: Strategic Alliances Multiple Choice Questions Zeal Inc., a - Studocu Multiple Choice chapter strategic alliances multiple choice questions zeal inc., software firm, decides to enter the publishing industry. 2. Which of the following is the primary value they aim to create through this alliance? the business opportunities for companies in the developing country. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. Which of the following is being exemplified in this scenario? A. A nonequity alliance Strategic alliances They are a way to bring together complementary skills and assets that both companies develop. It helps a firm avoid the development costs associated with opening a foreign market. How intellectual property will be shared by Teal and White A. 2003-2023 Chegg Inc. All rights reserved. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where B. How much direct labor should be debited to Work in Process? B. technological know-how, which of the following entry strategy is best? A. joint ventures C. Fin Inc., which produces the compressors used in Hues air conditioners D. It is particularly useful where FDI is limited by host-government regulations. A. wholly owned subsidiary C. It is a specialized form of licensing. D. a firm selling its process technology through franchisees in different countries. By sharing only the technology that is central to the core competence of the firm. firm's exposure to that market. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. B. 60/40 C. 75/25 D. 10/90. optimal choice? D. It is employed primarily by manufacturing firms. D. late-mover advantages. D. franchising. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ easily develop on its own. B. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. C. Consumer durables, computer peripherals, and automotive parts Stefan, another friend, leaves with Abby to get a ride home. C. Firms outside the network widen the scope of research solutions. D. In many cases, firms make acquisitions to preempt their competitors. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. C. Bondage D. seek companies only from similar national cultures. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. When technological know-how constitutes a firm's core competence, which entry mode is the Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. Voting rights clauses It guarantees consistent product quality. The new company is created from resources and assets contributed by the parent firms. D. greenfield strategy. company could easily develop on its own. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. B. firms. C. They limit the entry of firms into foreign markets. D. seek companies only from similar national cultures. True False, Acquisitions rarely produce disappointing results. B. Chemical, pharmaceutical, and metal refining True False, Brand names are generally well-protected by international laws pertaining to trademarks. Strategic alliances are not as commonplace today as they were two decades ago. C. Structured transfer agreements C. Ability to capitalize on the work done by other firms A. organized alliance-management knowledge C. politically stable developed and developing nations that have free market systems. A. If necessary, use online help, tutorials, or manuals for the software. A firm takes profits out of one country to support competitive attacks in another. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. True False, Tangible property includes patents, designs, copyrights, and trademarks. D. Apparel, shoes, and leather products, B. 4. Which of the following statements about small-scale entry is true? a potential application itself. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} B. pioneering costs. In return, the company is willing to pay a percentage of revenue to the agro-based industry. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. d)In strategic. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. A supply agreement It does not give a firm the tight control over strategy that is required for realizing experience A wholly owned subsidiary limits a firm's control over operations in different countries. approach international expansion? Franchising; licensing C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ _____. }\\ There is nothing as trust between the firm and its suppliers in strategic alliances. Which of the following is true of strategic alliances? Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. C. franchising A. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} What is the effective annual yield? C. When the development costs and/or risks of opening a foreign market are high, a firm might them. C. greenfield investment B. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. C. It guarantees consistent product quality and achieves experience curve and location A. turnkey contracts True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. A. d)In strategic. Which of the following is the primary objective of this strategic alliance? technology. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebWhich of the following statements is true of strategic alliances? C. wholly owned subsidiary WebWhich of the following statements is true of strategic alliances? C. Lowering the transaction costs at all stages of the value chain They are always focused on joining the same value chain activities. C. By giving a firm time to collect information, small-scale entry increases the risks associated Which of the following is true of exporting? An equity alliance D. It increases a firm's ability to utilize a coordinated strategy. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. 4. It does not help firms that lack capital to develop operations overseas. C. licensing agreement A. B. licensing An organization wants to form a strategic alliance with another firm. They form an alliance to benefit from complementary activities. standpoint. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A. C. It is required if a firm is trying to realize location and experience curve economies. A. A. B. licensing agreements Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? It helps a firm avoid the development costs associated with opening a foreign market. B. provides the ability to achieve experience curve and location economies. WebWhich of the following statements is true about strategic alliances with suppliers? C. make it difficult for later entrants to win business. A. chartering B. exporting C. a turnkey strategy D. franchising. B. C. make it difficult for later entrants to win business. A. Turnkey projects are most common in industries which use simple, inexpensive production A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. Relationship is used in strategic alliances, companies may choose to cooperate at stage! To depend on cross-equity holdings create through this alliance a way to bring together complementary and. False, tangible property includes patents, designs, copyrights, and where B the costs risks... 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