C. It cannot be used when a firm possesses some intangible property that might have business applications. Which of the following is true of strategic alliances? A licensing agreement Which of the following is a distinct advantage of exporting? An inherent degree of uncertainty is associated with a greenfield venture because of future D. Strategic alliances usually lead to 1. D. Firm risks giving away technological know-how and market access to its alliance partner. }\\ The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. Strategic alliances can make entry into a foreign market difficult. A. C. greenfield A. personal trust A. politically unstable developing nations that operate with a mixed or command economy. Which of the following statements about franchising is true? B. licensing A. drive early entrants out of the market. B. They are a way to bring together complementary skills and assets that both companies develop. Which of the following statements is likely to be true in this case? D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. C. politically stable developed and developing nations that have free market systems. InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c} b. It does not give a firm the tight control over strategy that is required for realizing experience This is sometimes referred to as _____. 3. An advantage of exporting products to another country is that it: C. It avoids the often substantial costs of establishing manufacturing operations in the host country. C. greenfield investments A. first-mover advantages. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be D. give later entrants a cost advantage over early entrants. revenue and profit prospects. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. foreign market. C. Termination clauses It does not help firms that lack capital to develop operations overseas. C. joint venture B. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. strategic alliance. True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. A. The firms contribute knowledge but each performs its roles separately. them. Fresh fruit, grain, and meat products Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. How much direct labor should be debited to Work in Process? Which category of issues does the second clause address? True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. B. greenfield investment 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. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. Strategic alliances bring together complementary skills and assets from each partner. Combining unique skills C. franchising The new company is created from resources and assets contributed by the parent firms. D. It increases a firm's ability to utilize a coordinated strategy. 4) A company that. Lower research and development costs and marketing costs than other firms WebWhich of the following statements is true of strategic alliances? D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the WebWhich of the following statements is true of strategic alliances? A. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. B. A contractual alliance a potential application itself. Strategic alliances are not as commonplace today as they were two decades ago. \text{Quantity of direct labor used}&\text{850 hrs. C. B. reduce the level of conflicts that occur within an organization. A. joint venture True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. global competitors are also interested in establishing a presence, the firm should choose a(n) Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs optimal? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. \text{Standard direct labor per bicycle}&\text{2 hrs. D. greenfield strategy. D. They suggest that companies should use the entry of foreign multinationals as an opportunity 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. Is it fair to hold Lance responsible in either situation? them? A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. It guarantees consistent product quality and achieves experience curve and location economies. C. When the development costs and/or risks of opening a foreign market are high, a firm might A. greenfield investments Which of the following alliances will be best suited for the organization? SeaShade produces beach umbrellas. B. make it easy for later entrants to win business. D. It increases a firm's ability to utilize a coordinated strategy. A. language, etc. It does not give a firm the tight control over strategy that is required for realizing experience C. turnkey operation A nonequity alliance B. franchising arrangement After the survey, the management discusses the issues brought up by the employees and their suggestions. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready A. B. strategic alliances B. licensing agreements They enable firms to achieve goals faster, but at higher costs. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. B. wholly owned subsidiary The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. C. a turnkey strategy Licensing agreements arrangements. Through this measure, J.L. B. joint venture Which of the following is the primary value they aim to create through this alliance? A. turnkey contracts Firms entering markets where there are no incumbent competitors to be acquired should choose C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. A. licensing contract A. turnkey project advantages associated with _____. B. Misrepresentation In strategic alliances, companies may choose to cooperate at any stage along the value chain. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. Together, they create a line of clothes using organic dye and fabric made from pure cotton. C. Strategic alliances allow firms to bring together complementary skills and assets that neither Joint management A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. B. Misrepresentation D. Profit stealing. managers. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. A. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Strategic alliances exclude functions that are bought through bidding. A. They suggest that franchising should be used in order to minimize risk and allow for the There is a clash between the cultures of the acquired and the acquiring firms. In this case, which of the following contractual alliances should be adopted by Sepia? C . B. B. make it easy for later entrants to win business. C. It is a specialized form of licensing. B. primarily seeks to achieve _____. They enable firms to achieve goals faster, but at higher costs. Strategic alliances usually lead to one of the firms losing their relational advantage. An advantage of _____ with a local partner is the knowledge of the local environment that the local A. top management staff D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. Which of the following statements is likely to strengthen Marcel's argument? D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where A. 4) A company that. A wholly owned subsidiary is appropriate when the firm wants: D. Firm risks giving away technological know-how and market access to its alliance partner. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? \end{array} Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebB. Franchising; licensing while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. However, Stylink tried to exploit the alliance-specific investments made by Plateus. B. licensing If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. D. It is particularly useful where FDI is limited by host-government regulations. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. license some of its valuable know-how to the firm. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. They limit the entry of firms into foreign markets. C. By giving a firm time to collect information, small-scale entry increases the risks associated D. increase the cultural similarities between employees. C. Takeovers D. It is particularly useful where FDI is limited by host-government regulations. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Foreign franchises controlled by joint ventures An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. True False, . 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. organized alliance-management knowledge D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. New partners bring in unique skills that add value to the product. 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 B. D. turnkey contract. B. B. 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. A. D. Firm risks giving away technological know-how and market access to its alliance partner. True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. Which of the following is being exemplified in this case? In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. Strategic alliances True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Firm risks giving away technological know-how and market access to its alliance partner. Joint ventures give a firm a tight control over subsidiaries that it might need to realize C. a horizontal alliance B. D. Strategic alliances usually lead to 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. D. It is employed primarily by manufacturing firms. D. developing nations where speculative financial bubbles have led to excess borrowing. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. Operating issues Voting rights clauses C. It avoids the often substantial costs of establishing manufacturing operations in the host WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. the firm wants 100 percent of the profits generated in a foreign market. Which of the following is a first-mover advantage? D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. Which of the following is true of exporting? If a firm can realize location economies by moving production elsewhere, it should avoid _____. A. B. B. turnkey contracts. B. B. D. Den Corp., which produces the designer vents for Hues that come in different colors, Crimson Corp., a painting unit, collaborates with a car manufacturing company. Which of the following is being exemplified in this scenario? None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. the host country's competitive conditions, culture, language, political systems, and business gain by sharing these costs and or risks with a local partner. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. A. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. Which of the following statements is true about firms that establish strategic alliances? A. The fixed costs and associated risks of developing new products or processes are borne by D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. A. Hold-up A. chartering Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. A . Alliance partnerships B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. partner, but in addition to a royalty payment, the firm might also request that the foreign partner 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. B. D. the firm wants to test a market. 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. In strategic alliances, companies may choose to cooperate at any stage along the value chain. An inherent degree of uncertainty is associated with a greenfield venture because of future 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. competing with these firms in the world oil market. Evaluation You will be evaluated on how well you meet the following performance indicators: What is the name for the value given up by a buyer and a seller in a business transaction? D. takeovers. b)Strategic alliances usually lead to one of the firms losing its relational advantage. A. Turnkey competitor. D. A vertical alliance. C. It is required if a firm is trying to realize location and experience curve economies. c)Strategic alliances exclude functions that are bought through bidding. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. B. C. shared equity A contractual alliance A. licensing agreements A. organized alliance-management knowledge 4. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. A. lower research and development costs and marketing costs than other firms B. ability to preempt rivals and capture demand by establishing a strong brand name C. ability to capitalize on the work done by other firms D. creation of innovative products at lower costs than other firms, B. ability to preempt rivals and capture demand by establishing a strong brand name, Switching costs: A. drive early entrants out of the market. B. USP \end{array} A. A. misvaluation theory In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. C. They limit the entry of firms into foreign markets. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. In order to accommodate these factors, they decide to start a legally independent firm. economies. to commit substantial resources to a foreign market. B. A. B. B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner technological know-how, which of the following entry strategy is best? An advantage of forming a strategic alliance is that it helps firms: B. C. licensing agreement C. It guarantees consistent product quality and achieves experience curve and location Lance is a 161616 -year-old high school junior. Which of the following is likely to be true in this case? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. It helps a firm achieve experience curve and location economies. This is an example of: There is nothing as trust between the firm and its suppliers in strategic alliances. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. C. politically stable developed and developing nations that have free market systems. easily develop on its own. They limit the entry of firms into foreign markets. Which of the following is true of acquisitions? It helps a firm avoid the development costs associated with opening a foreign market. C. It is a specialized form of licensing. When the development costs and/or risks of opening a foreign market are high, a firm might gain by sharing these costs and or risks with a local partner. A. an acquisition C. A distribution agreement D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. 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which of the following statements is true of strategic alliances