What are the risks of a strategic partnership?
A)Strategic partners can influence government agencies in ways that are adverse to the organisation
B)Strategic partnerships increase the costs of labour, because collaboration is very expensive
C)Strategic partners can use the knowledge gained by the partnership and become competitive rivals
D)There are no risks in strategic partnerships

Question

Quizplus · Accepted Answer

One of the biggest risks of a strategic partnership is that the other company can use the knowledge gained through the partnership to become a competitor. Therefore, option C is the correct answer. Option A may be a risk in some cases, but it is not a general risk of strategic partnerships. Option B is incorrect because strategic partnerships are often entered into to reduce costs, not increase them. Option D is incorrect because there are always risks involved in strategic partnerships.

What Are the Risks of a Strategic Partnership