For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a merger or acquisition for all the following reasons EXCEPT:
A) a host nation may forbid a merger or acquisition.
B) opportunistic behaviors are less likely.
C) cooperative strategies require fewer resources.
D) cooperative strategies allow greater flexibility in diversifying the firm's portfolio.

Question

Quizplus · Accepted Answer

The statement "opportunistic behaviors are less likely" is a reason why a corporate-level cooperative strategy may be preferable to a merger or acquisition. However, this is not a reason why it may be preferable to a cooperative strategy. The other options are all valid reasons why a cooperative strategy may be preferable to a merger or acquisition.

For the Purpose of Diversification, a Corporate-Level Cooperative Strategy May