Which of the following is the most likely reason Firm A would decide to forgo an acquisition and pursue an alliance instead?
A)It wants learning opportunities without long-term commitment.
B)It wants greater control of day-to-day operations.
C) It wishes to engage in a long-term enduring relationship.
D) It wishes to consolidate market power, reduce risks, and leverage economies of scope.

Question

Which of the following is the most likely reason Firm A would decide to forgo an acquisition and pursue an alliance instead?
A)​It wants learning opportunities without long-term commitment.
B)​It wants greater control of day-to-day operations.
C) ​It wishes to engage in a long-term enduring relationship.
D) ​It wishes to consolidate market power, reduce risks, and leverage economies of scope.

Quizplus · Accepted Answer

An alliance allows Firm A to gain learning opportunities and benefits from collaboration without the long-term commitment and control issues associated with an acquisition.

Which of the Following Is the Most Likely Reason Firm