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Corporate Strategy MCQ

A(n) ____ is a voluntary agreement of cooperation between firms.

Equity-based alliance

Strategic alliance

Merger

Acquisition.

Answer

Correct Answer: Equity-based alliance

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The purpose of an eco-machine is to ________.

Flushing toilets

Evapotranspiration

Treat wastewater

A sinkhole

Answer

Correct Answer: Treat wastewater

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Alliances between firms that are also competitors in another sphere is an example of:

Synergy

Co-opetition

Cooperation

Organic networks

Answer

Correct Answer: Co-opetition

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The way in which alliance partners integrate their interests, use combined resources and relate is called ___________?

Alliance synergy

Alliance management

Alliance governance

None of the above

Answer

Correct Answer: Alliance governance

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Which of the following are types of strategic partnership?

Comprehensive alliances

Functional alliances

Production alliances

All of the above

Answer

Correct Answer: All of the above

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According to Gulati, ___________ are defined as purposive linkages between organizations that cover collaborations involving an exchange, a co-development or a sharing relationship.

Franchise agreements

Intellectual property intangibles

Strategic alliances

Answer

Correct Answer: Strategic alliances

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Firms collaborate in order to:

Access knowledge

Learn from each other

Overcome trade barriers

All of the above

Answer

Correct Answer: All of the above

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For Penrose (1959), firms are superior to markets in terms of their _________.

Management

Innovation

Endogenous creation of knowledge, innovation and value

None of the above

Answer

Correct Answer: Endogenous creation of knowledge, innovation and value

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Coase argued that the existence of the firm, as an alternative to market transactions, can be attributed to _______.

High market transaction costs

The benefits of a unified organizational culture

Economies of scale

Economies of scope

Answer

Correct Answer: High market transaction costs

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According to the Industrial Organization approach, firms cooperate because of the incentive for ________.

Price collusion

Efficiency

Value

None of the above

Answer

Correct Answer: Price collusion

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Which of the following approaches address inter-firm collaboration?

The Industrial Organization (IO) approach

Institutional theory

Contingency theory

The Machiavellian approach

Answer

Correct Answer: The Industrial Organization (IO) approach

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Pitelis defines a quasi-stable and durable, formal or informal arrangement between two or more independent firms, aiming to further the perceived interests of the parties involved as ___________.

Inter-firm cooperation

Subcontracting

Market exchange

A and b

Answer

Correct Answer: Inter-firm cooperation

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