Which of the following is a characteristic of a strategic partnership?
A)It allows multiple parties to share the risks and expenses.
B)It is limited to five or fewer participants.
C)It provides access to new sources of financing.
D)It prevents rival firms from collaborating.

Question

Quizplus · Accepted Answer

One of the key benefits of a strategic partnership is that it allows multiple parties to share the risks and expenses involved in a particular project or venture, making it a collaborative effort where the burden of expenses or risks is not borne by a single entity. Option B is incorrect, as there is no limit on the number of participants in a strategic partnership. Option C is also incorrect, as while a strategic partnership may provide access to new sources of financing, this is not a defining characteristic of such partnerships. Option D is incorrect, as a strategic partnership involves collaboration between parties, which may include rival firms.

Which of the Following Is a Characteristic of a Strategic