Exam 12: Making Alliances and Acquisitions Work

The degree of tacitness is low in non-equity-based alliances.

The formal institution-based view that drives mergers and alliances is based on the normative and cognitive pillars.

Which is one of the four phases in an alliance dissolution? 

Which of the following is a disadvantage of alliances? 

Describe the four driving forces that influence the choice of a contract or an equity approach in the formation of alliances.

At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach? 

Equity-based alliances include co-marketing,research and development,contracts,turnkey products,strategic suppliers,and strategic distributors.

During the first stage of alliance formation,a firm decides whether growth can be achieved strictly through market transactions,acquisitions,or alliances.

Which of the following reasons for cross-border acquisition failure is associated with pre-acquisition? 

In the context of equity-based alliances,_____ involves both firms investing in each other.

The second phase in an alliance dissolution is _____.

A joint venture (JV) is a form of equity-based alliance.

Formal government policies regarding entry mode requirements are generally becoming more conservative.

Contractual alliances involve sharing of ownership.

A(n) ____ is an investment in real operations as opposed to financial capital.

A real option enables the investor to buy an option for a small initial investment,hold it until a decision point arrives,and then exercise or abandon the option.

The first phase in an alliance dissolution is mediation by third parties.

Strategic investments in an equity-based alliance involve one partner investing in another.

Alliances permit firms to sequentially increase their investment should they decide to pursue acquisitions.

The difference between the acquisition price and the market value of target firms is called _____.