A firm deciding to pursue an alliance relationship with another firm has already made which of the following decisions?
A)Growth through market transactions is the best course of action.
B)Acquisition in this situation is risky.
C) Real options are not to be considered.
D) Institutional constraints are unimportant.

Question

A firm deciding to pursue an alliance relationship with another firm has already made which of the following decisions?
A)​Growth through market transactions is the best course of action.
B)​Acquisition in this situation is risky.
C) ​Real options are not to be considered.
D) ​Institutional constraints are unimportant.

Quizplus · Accepted Answer

An alliance suggests that the firm has considered acquisition but found it too risky or not feasible, hence opting for a partnership instead.

A Firm Deciding to Pursue an Alliance Relationship with Another