The main reason that a strategic alliance is often an attractive alternative to a merger or acquisition is:
A)Alliances avoid government restrictions relating to antitrust and foreign direct investment
B)Alliances permit firms to access one another's resources and capabilities without the costs and risks of a merger or acquisition
C)Alliances allow a firm to create growth options
D)Alliances allow risk sharing in giant projects.

Question

Quizplus · Accepted Answer

Strategic alliances allow firms to access each other's resources and capabilities without the costs and risks of a merger or acquisition. This is one of the main reasons why strategic alliances are often seen as an attractive alternative to M&A activities. Alliances can also provide benefits in terms of risk sharing, access to new markets, and the creation of growth options. However, government restrictions relating to antitrust and foreign direct investment may still apply in certain situations.

The Main Reason That a Strategic Alliance Is Often an Attractive