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MGMT Capstone exam 2 Practice Questions and Answers

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MGMT Capstone exam 2 Practice Questions and Answers A contractual alliance involves writing a contract that describes how much equity each partner receives. T/F - ANSWER-F To achieve economies of scale in a strategic alliance, two or more companies combine unique resources. T/F - ANSWER-F Whi...

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  • November 4, 2024
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KaylinHoffman
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MGMT Capstone exam 2 Practice

Questions and Answers


A contractual alliance involves writing a contract that describes how much equity each partner receives.

T/F - ANSWER✔✔-F


To achieve economies of scale in a strategic alliance, two or more companies combine unique resources.

T/F - ANSWER✔✔-F


Which one of the following is NOT one of the basic alliance arrangements?




Contractual alliance




Equal alliance




Equity alliance




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Joint venture - ANSWER✔✔-Equal alliance


Why should a company create a strategic alliance with one or more other companies?




To differentiate more from competitors




To combine resources and capabilities to create new value




To make employees happy that may have connections with other companies




Both to differentiate more from competitors and to combine resources and capabilities to create new

value




Both to combine resources and capabilities to create new value and to make employees happy that may

have connections with other companies




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All of the choices are correct. - ANSWER✔✔-Both to differentiate more from competitors and to

combine resources and capabilities to create new value


Which of the following are ways a firm can take advantage of another firm in an alliance?




Vertically integrating




Misrepresentation




Hold-up




Both vertically integrating and hold-up




Both misrepresentation and hold-up - ANSWER✔✔-Both misrepresentation and hold-up


Toyota's seat supplier built its factory next door to Toyota's main factory and built a conveyor built that

transferred seats from the supplier into the Toyota factory. This is an example of _____________.




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combining unique resources




creating alliance specific resources




pooling similar resources




making the best out of their situation - ANSWER✔✔-creating alliance specific resources


Zeal Inc., a software firm, decides to enter the publishing industry. 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. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-

publisher. Which of the following is likely to be true in this case?




Zeal's vision is likely to contradict that of Chrome.




Chrome is likely to provide its expertise only at the marketing stage.




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