Which of the Following Is Not a Characteristic of Strategic

Multiple Choice

Which of the following is not a characteristic of strategic alliances entered into to support related diversification?

A) It is a way for companies to realize some of the benefits of diversification at a lower level of bureaucratic costs.
B) It requires each company to take an equity stake in the new venture.
C) A disadvantage is the risk of losing proprietary know-how to a competitor.
D) It entails investing in a new business or product (including upgrades) instead of an existing one.
E) It allows a company to swap complementary skills.