For companies that are seeking to augment their own resource and capability base with those of another company,the choice between acquisition and strategic alliance rests primarily upon:
A)How close a relationship is necessary in order to gain use f the desired resource of capability
B)Whether or not the companies are located in different countries
C)Whether the companies involved are listed or privately held
D)Whether the desired resource or capability is tradable

Question

Quizplus · Accepted Answer

The choice between acquisition and strategic alliance depends on how close a relationship is necessary to gain use of the desired resource or capability. If the resource or capability requires a close relationship with the other company, then a strategic alliance may be more appropriate. If the resource or capability can be acquired through ownership of the other company, then an acquisition may be more appropriate.

For Companies That Are Seeking to Augment Their Own Resource