Question 1

Firms with a high degree of network centrality are likely to be more attractive partners.

Accepted Answer

A) True 
 B)False

Question 2

Opportunism is seldom an issue with members of an alliance.

Accepted Answer

A) True 
 B)False

Question 3

The stock market responds favorably to alliance activities, but only under which circumstances?

Accepted Answer

A) Complementary resources. 
B) Previous alliance experience. 
C)  Ability to manage the host country's political risk. 
D)  All of the above. 
A) Complementary resources. 
B) Previous alliance experience. 
C)  Ability to manage the host country's political risk. 
D)  All of the above.

Question 4

Three medical supply companies join together to bring a burn wound treatment to market more quickly. Their collaboration is a:

Accepted Answer

A) ​Horizontal alliance. 
B) ​Upstream vertical alliance. 
C)  ​Institution-based merger. 
D)  ​Downstream vertical alliance. 
A) ​Horizontal alliance. 
B) ​Upstream vertical alliance. 
C)  ​Institution-based merger. 
D)  ​Downstream vertical alliance.

Question 5

Which of the following is NOT involved in the stages of forming business relationships?

Accepted Answer

A) The decision to cooperate. 
B) Positioning the relationship. 
C)  The choice of contract or equity. 
D)  All of the above. 
A) The decision to cooperate. 
B) Positioning the relationship. 
C)  The choice of contract or equity. 
D)  All of the above.

Question 6

Cross-shareholding is a popular form of non-equity-based alliances

Accepted Answer

A) True 
 B)False

Question 7

Acquisitions work well when the ratio of soft to hard assets is relatively high, whereas alliances may be preferred when such a ratio is low.

Accepted Answer

A) True 
 B)False

Question 8

Many governments tend to prefer alliances over the establishment of wholly owned subsidiaries.

Accepted Answer

A) True 
 B)False

Question 9

Institution-based considerations regarding organization include:

Accepted Answer

A) Collusion concerns. 
B) Entry requirements. 
C)  The social pressures to find partners. 
D)  All of the above. 
A) Collusion concerns. 
B) Entry requirements. 
C)  The social pressures to find partners. 
D)  All of the above.

Question 10

The term "strategic networks" is derived from the term "social networks" highlighting the social aspects of interfirm relationships.

Accepted Answer

A) True 
 B)False

Question 11

Weak ties excel at connecting with distant others who possess unique and novel information.

Accepted Answer

A) True 
 B)False

Question 12

Strategic networks work against other groups, but not against traditional single firms

Accepted Answer

A) True 
 B)False

Question 13

The first concern in determining whether a relationship should be based on contract or equity is:

Accepted Answer

A) The kind of resources and capabilities that are shared. 
B) Direct monitoring and control. 
C)  Real options. 
D)  Institutional constraints. 
A) The kind of resources and capabilities that are shared. 
B) Direct monitoring and control. 
C)  Real options. 
D)  Institutional constraints.

Question 14

Detailed formalization of an alliance relationship is a sign of trust.

Accepted Answer

A) True 
 B)False

Question 15

A joint venture can be described as:

Accepted Answer

A) A special case of equity-based alliance. 
B) A legally dependent entity. 
C)  An alliance based on contracts and does not involve the sharing of ownership. 
D)  A compromise between merger and acquisition. 
A) A special case of equity-based alliance. 
B) A legally dependent entity. 
C)  An alliance based on contracts and does not involve the sharing of ownership. 
D)  A compromise between merger and acquisition.

Question 16

A non-JV, equity-based alliance can be regarded as two firms "getting married," but not having "children."

Accepted Answer

A) True 
 B)False

Question 17

In order to extract the most benefit from alliances, managers need to:

Accepted Answer

A) ​Focus on the social and psychological phenomenon of the relationship rather than the economic aspects. 
B) ​Emphasize competition. 
C)  ​Foster trust with partners. 
D)  ​Practice opportunism. 
A) ​Focus on the social and psychological phenomenon of the relationship rather than the economic aspects. 
B) ​Emphasize competition. 
C)  ​Foster trust with partners. 
D)  ​Practice opportunism.

Question 18

Strategic alliances involve:

Accepted Answer

A) Obligatory agreements between firms. 
B) Compromises between short-term transactions and long-term solutions. 
C)  Eventual acquisitions. 
D)  None of the above. 
A) Obligatory agreements between firms. 
B) Compromises between short-term transactions and long-term solutions. 
C)  Eventual acquisitions. 
D)  None of the above.

Question 19

A joint venture is a strategic alliance that is closest to a merger/acquisition.

Accepted Answer

A) True 
 B)False

Question 20

A firm deciding to pursue an alliance relationship with another firm has already made which of the following decisions?

Accepted Answer

A) ​Growth through market transactions is the best course of action. 
B) ​Acquisition in this situation is risky. 
C)  ​Real options are not to be considered. 
D)  ​Institutional constraints are unimportant. 
A) ​Growth through market transactions is the best course of action. 
B) ​Acquisition in this situation is risky. 
C)  ​Real options are not to be considered. 
D)  ​Institutional constraints are unimportant.

Firms with a high degree of network centrality are likely to be more attractive partners.

Opportunism is seldom an issue with members of an alliance.

The stock market responds favorably to alliance activities, but only under which circumstances?

Three medical supply companies join together to bring a burn wound treatment to market more quickly. Their collaboration is a:

Which of the following is NOT involved in the stages of forming business relationships?

Cross-shareholding is a popular form of non-equity-based alliances

Acquisitions work well when the ratio of soft to hard assets is relatively high, whereas alliances may be preferred when such a ratio is low.

Many governments tend to prefer alliances over the establishment of wholly owned subsidiaries.

Institution-based considerations regarding organization include:

The term "strategic networks" is derived from the term "social networks" highlighting the social aspects of interfirm relationships.

Weak ties excel at connecting with distant others who possess unique and novel information.

Strategic networks work against other groups, but not against traditional single firms

The first concern in determining whether a relationship should be based on contract or equity is:

Detailed formalization of an alliance relationship is a sign of trust.

A joint venture can be described as:

A non-JV, equity-based alliance can be regarded as two firms "getting married," but not having "children."

In order to extract the most benefit from alliances, managers need to:

Strategic alliances involve:

A joint venture is a strategic alliance that is closest to a merger/acquisition.

A firm deciding to pursue an alliance relationship with another firm has already made which of the following decisions?

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 7: Making Strategic Alliancee and Networks Work

Firms with a high degree of network centrality are likely to be more attractive partners.

Opportunism is seldom an issue with members of an alliance.

The stock market responds favorably to alliance activities, but only under which circumstances?

Three medical supply companies join together to bring a burn wound treatment to market more quickly. Their collaboration is a:

Which of the following is NOT involved in the stages of forming business relationships?

Cross-shareholding is a popular form of non-equity-based alliances

Acquisitions work well when the ratio of soft to hard assets is relatively high, whereas alliances may be preferred when such a ratio is low.

Many governments tend to prefer alliances over the establishment of wholly owned subsidiaries.

Institution-based considerations regarding organization include:

The term "strategic networks" is derived from the term "social networks" highlighting the social aspects of interfirm relationships.

Weak ties excel at connecting with distant others who possess unique and novel information.

Strategic networks work against other groups, but not against traditional single firms

The first concern in determining whether a relationship should be based on contract or equity is:

Detailed formalization of an alliance relationship is a sign of trust.

A joint venture can be described as:

A non-JV, equity-based alliance can be regarded as two firms "getting married," but not having "children."

In order to extract the most benefit from alliances, managers need to:

Strategic alliances involve:

A joint venture is a strategic alliance that is closest to a merger/acquisition.

A firm deciding to pursue an alliance relationship with another firm has already made which of the following decisions?

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters