Stock markets are more likely to respond favorably to companies that engage in alliance activities if the partners:
A)Are from countries with no political risk.
B)Have previous alliance experiences.
C) Possess similar resources.
D) Are small in size.

Question

Stock markets are more likely to respond favorably to companies that engage in alliance activities if the partners:
A)​Are from countries with no political risk.
B)​Have previous alliance experiences.
C) ​Possess similar resources.
D) ​Are small in size.

Quizplus · Accepted Answer

Companies that have previous alliance experiences are more likely to have a better understanding of how to navigate their partnerships, which can lead to increased confidence from investors and a more favorable response from the stock market. Possessing similar resources may also be beneficial as it reduces potential conflicts and increases the likelihood of successful collaboration, but it is not as strong of a factor as previous alliance experiences. The other choices, being from countries with no political risk and being small in size, do not necessarily have a significant impact on how the stock market responds to alliance activities.

Stock Markets Are More Likely to Respond Favorably to Companies