Which of the following is a disadvantage of alliances?
A) Lack of learning race
B) Partner opportunism
C) Value as real options
D) Scale up and scale down of investments

Question

Which of the following is a disadvantage of alliances? 
A) Lack of learning race 
B) Partner opportunism 
C) Value as real options 
D) Scale up and scale down of investments

Quizplus · Accepted Answer

Partner opportunism is a common disadvantage of alliances, where one partner may take advantage of the other partner's resources or expertise without providing sufficient returns. This can lead to trust issues and relationship breakdowns. The other options are not disadvantages of alliances: A) Lack of learning race is not a term commonly used in alliance management and does not make sense in the context of this question. C) Value as real options refers to the flexibility and strategic value that alliances can provide, which is actually an advantage rather than a disadvantage. D) Scale up and scale down of investments refers to the ability to adjust the level of investment in an alliance based on changing circumstances or performance, which is again an advantage rather than a disadvantage.

Which of the Following Is a Disadvantage of Alliances