Which of the Following Describes a Benefit of a Long-Term

Multiple Choice

Which of the following describes a benefit of a long-term cooperative relationship over a short-term alliance?

A) It is a substitute for vertical integration because it creates a relatively stable, long-term partnership that allows both companies to obtain the same kinds of benefits that result from vertical integration.
B) It can help avoid the problems such as bureaucratic costs that arise from managerial inefficiencies that result when a company owns its own suppliers.
C) Resulting cost savings are shared by suppliers who make substantial investments in specialized assets to better serve the needs of a particular business, and another company.
D) The businesses jointly find ways to lower costs or increase product quality so both players gain from the relationship.
E) All of these are benefits of a long-term cooperative relationship. They both gain from their relationship.