B. licensing contracts Which of the following is likely to be covered under the clause that deals with governance issues? C. Strategic alliances C. Strategic alliances allow firms to bring together complementary skills and assets that neither Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. a country subsequently proving to be a major market for the output of the process that has been exported. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. D. seek companies only from similar national cultures. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. 100 percent of the profits generated in a foreign market. An advantage of forming a strategic alliance is that it helps firms: There is a clash between the cultures of the acquired and the acquiring firms. A. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. experience curve or location economies. Which of the following is an advantage of establishing a joint venture? B. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. \text{Quantity of direct labor used}&\text{850 hrs. B. What performance is expected by Teal and White from each other A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . to learn from these competitors by benchmarking their operations and performance against A. a joint venture 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. The firm does not have to bear the development costs and risks associated with opening a Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. Nate, the operations head, suggests extending the prospects by looking outside their usual network. In this case, which of the following contractual alliances should be adopted by Sepia? A. exporting Acquisitions It does not help firms that lack capital to develop operations overseas. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the B. increased external visibility B. A. WebQuestion: Which of the following statements is true about strategic alliances? C. acquisitions Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. Misrepresentation C. a country subsequently proving to be a major market for the output of the process that has Which of the following is a first-mover advantage? AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. country. C . Which of the following statements is true about firms in a joint venture? In strategic alliances, companies may choose to cooperate at any stage along the value chain. Through this measure, Plateus seeks to primarily achieve _____. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. Modularization C. shared equity A. What is the effective annual yield? D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. D. In many cases, firms make acquisitions to preempt their competitors. B. 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. D. Strategic alliances usually lead to An advantage of exporting products to another country is that it: A. misvaluation theory D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. make it easy for later entrants to win business. A. D. Team building. Joint venture is not a type of strategic alliances. 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. B. D. Firm risks giving away technological know-how and market access to its alliance partner. A wholly owned subsidiary limits a firm's control over operations in different countries. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. According to the _____, top managers typically overestimate their ability to create value from an acquisition. However, they do not have a supplier-buyer relationship. B. exporting \text{Bicycles completed in September}&\text{400}\\ revenue and profit prospects. C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. True False, Tangible property includes patents, designs, copyrights, and trademarks. B. C. Equity clauses Prepare a written outline of the points of your presentation. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ B. C. It helps a firm achieve experience curve and location economies. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. D. wholly owned subsidiaries. It requires additional resources to complete the process. A. Greenfield investments Strategic alliances usually lead to one of the firms losing their relational advantage. C. By giving a firm time to collect information, small-scale entry increases the risks associated maximum expansion in the quickest amount of time. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. joint ventures technology. An alliance is likely to rely most on relationships between individuals when it is based on _____. C. a turnkey strategy Which of the following statements is true about strategic alliances? C. share the risks of developing new products or processes. C. greenfield investment, The most typical joint venture is a _____ venture. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. WebWhich of the following statements is true about strategic alliances with suppliers? It does not give a firm the tight control over strategy that is required for realizing experience True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. top management staff It does not give a firm the tight control over strategy that is required for realizing experience Hold majority ownership in the venture so that the firm has greater control over the technology. D. greenfield strategy. C. Exit issues They form an alliance to benefit from complementary activities. primarily seeks to achieve _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. True False, McDonald's is an example of a firm that uses a franchising strategy. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. B. C. joint-venture B. Strategic alliances usually lead to one of the firms losing their relational advantage. D. Apparel, shoes, and leather products, B. A firm takes profits out of one country to support competitive attacks in another. After the survey, the management discusses the issues brought up by the employees and their suggestions. He gathers the alcohol left over from his parents' New Year's party and decides to throw a party at his house on a Saturday night when his parents are out of town. D. gives firms access to local knowledge. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. It tends to involve more short-term commitments than licensing. A. A. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. Black Corp., which prints Hues logo on the air conditioners True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. Governance issues C. The parent firms share revenues and expenses in a particular ratio. C. politically stable developed and developing nations that have free market systems. A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? B. make it easy for later entrants to win business. D. turnkey contract. Fresh fruit, grain, and meat products C. goodwill trust approach international expansion? Determine the prices at the breakeven points. 3. A . The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. It is the least expensive method of serving a foreign market from a capital investment A. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. Which of the following is being exemplified in this case? As Abby pulls her car onto the highway, she swerves and hits another car head-on. Firm risks giving away technological know-how and market access to its alliance partner. They are a way to bring together complementary skills and assets that both companies 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. D. A vertical alliance. WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic D. Licensing agreements. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. Through this measure, J.L. It helps a firm avoid the development costs associated with opening a foreign market. C. It is a specialized form of licensing. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. WebWhich of the following is true of strategic alliances? The second firm is at the same level along the value chain. product are capitalizing on: Which of the following is being exemplified in this case? Which of the following is a distinct advantage of exporting? foreign market. Which of the following is being exemplified in this case? C. low transaction costs An equity alliance A. Answer questions from your audience about the feature and how to use it. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign C. A distribution agreement license some of its valuable know-how to the firm. B. turnkey contracts. Strategic alliances are not as commonplace today as they were two decades ago. A. D. A joint venture. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. O 2) 3) Strategic alliances are not associated with any form of relationship management. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. ground up, called the _____. been exported. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service A contractual alliance C. make it difficult for later entrants to win business. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. wholly owned subsidiary _____ are the advantages associated with entering a market early. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. C. It avoids the often substantial costs of establishing manufacturing operations in the host However, Sands brings more resources to the new firm than the other partner. B. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. A. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. firms. Licensing agreements C. It is a specialized form of licensing. They are a way to bring together complementary skills and assets that both companies develop. C. A distribution agreement 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ C. intervention and accountability A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. A. transportation D. tangible property. their _____. 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. A. joint venture B. the firm wants 100 percent of the profits generated in a foreign market. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. B. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. What is Bartlett and Ghoshal's perspective on how firms from developing countries should D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the C. It guarantees consistent product quality and achieves experience curve and location economies. Which of the following is exemplified in this scenario? It is a time-consuming process and takes a lot of time to execute. }\\ A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. However, Stylink tried to exploit the alliance-specific investments made by Plateus. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. managers. D. wholly owned subsidiaries. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Residual rights clauses D. franchising agreement. country. B. Misrepresentation A. licensing agreements B. franchising agreements C. intangible property D. tangible property. partner contributes to the venture. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ C. They limit the entry of firms into foreign markets. Combining unique resources along different stages of the value chain 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 _____. B. Joint ventures to commit substantial resources to a foreign market. A. joint ventures Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. them. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. \text{Standard rate for direct labor}&\text{\$16.00 per hr. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. licensing. C. They suggest turnkey operations that allow for a rapid startup. A. WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. If a firm's core competency is based on control over proprietary technological know-how, _____ The costs of promoting and establishing a product offering when a firm enters a foreign market In strategic alliances, companies may choose to cooperate at any stage along the value chain. A selling alliance Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Which of the following is true of strategic alliances? 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