MAN4720 2025/2026 Exam Questions
and Answers | A+ Score Assured
BPM Corp. is a manufacturer of radar systems for regional-sized jet aircraft. The
company has announced plans to enter into a joint venture with J3 Composites, a
producer of advanced composite materials. The announced venture will produce a
new, combined product consisting of the radar unit and protective composite cover.
Which of the following ownership arrangements would be MOST typical for a
joint venture?
BPM will own more than 50 percent of the venture and a new company will be
formed.
J3 will own more than 50 percent of the venture and a new company will be
formed.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,BPM and J3 will both own 50 percent of the venture and a new company will be
formed.
BPM and J3 will both own 50 percent of the venture but no new company will be
formed. - 🧠 ANSWER ✔✔BPM and J3 will both own 50 percent of the venture
and a new company will be formed.
Firms participate in strategic alliances for all of the following reasons EXCEPT to:
create value that they could not develop by acting independently.
enter competitive markets more quickly.
gain access to resources.
retain tight control over intangible core competencies. - 🧠 ANSWER ✔✔retain
tight control over intangible core competencies.
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Horizontal complementary strategic alliances are designed so that each partner
realizes equal benefits from equal investments in the alliance.
T/F ? - 🧠 ANSWER ✔✔False
What might be a reason that the number of cross-border alliances are continuing to
increase?
They are relatively easy to manage.
They can occur in virtually all industries.
They create value in the home market.
They are riskier than mergers, but not as risky as acquisitions. - 🧠 ANSWER
✔✔They can occur in virtually all industries.
A statewide alliance of independent hospitals has formed in order to do group
purchasing of medical supplies. Group purchasing allows the hospital alliance to
3
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, negotiate lower prices with suppliers because of the large quantity of materials
ordered. This is an example of the advantage of __________ resulting from an
alliance.
explicit collusion
economies of scale
opportunistic behavior
distribution opportunities - 🧠 ANSWER ✔✔economies of scale
Strategic alliances have become the cornerstone of many firms' competitive
strategy, particularly large global competitors.
T/F? - 🧠 ANSWER ✔✔True
The three main luxury hotels in a major tourist destination keep very close track of
their competitors' room pricing, restaurant offerings, tour packages, and special
services, such as airport transportation and spa privileges. When one hotel makes
adjustments in prices or offerings, the other hotels follow suit. It is possible that
these hotels are:
4
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
and Answers | A+ Score Assured
BPM Corp. is a manufacturer of radar systems for regional-sized jet aircraft. The
company has announced plans to enter into a joint venture with J3 Composites, a
producer of advanced composite materials. The announced venture will produce a
new, combined product consisting of the radar unit and protective composite cover.
Which of the following ownership arrangements would be MOST typical for a
joint venture?
BPM will own more than 50 percent of the venture and a new company will be
formed.
J3 will own more than 50 percent of the venture and a new company will be
formed.
1
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,BPM and J3 will both own 50 percent of the venture and a new company will be
formed.
BPM and J3 will both own 50 percent of the venture but no new company will be
formed. - 🧠 ANSWER ✔✔BPM and J3 will both own 50 percent of the venture
and a new company will be formed.
Firms participate in strategic alliances for all of the following reasons EXCEPT to:
create value that they could not develop by acting independently.
enter competitive markets more quickly.
gain access to resources.
retain tight control over intangible core competencies. - 🧠 ANSWER ✔✔retain
tight control over intangible core competencies.
2
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Horizontal complementary strategic alliances are designed so that each partner
realizes equal benefits from equal investments in the alliance.
T/F ? - 🧠 ANSWER ✔✔False
What might be a reason that the number of cross-border alliances are continuing to
increase?
They are relatively easy to manage.
They can occur in virtually all industries.
They create value in the home market.
They are riskier than mergers, but not as risky as acquisitions. - 🧠 ANSWER
✔✔They can occur in virtually all industries.
A statewide alliance of independent hospitals has formed in order to do group
purchasing of medical supplies. Group purchasing allows the hospital alliance to
3
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, negotiate lower prices with suppliers because of the large quantity of materials
ordered. This is an example of the advantage of __________ resulting from an
alliance.
explicit collusion
economies of scale
opportunistic behavior
distribution opportunities - 🧠 ANSWER ✔✔economies of scale
Strategic alliances have become the cornerstone of many firms' competitive
strategy, particularly large global competitors.
T/F? - 🧠 ANSWER ✔✔True
The three main luxury hotels in a major tourist destination keep very close track of
their competitors' room pricing, restaurant offerings, tour packages, and special
services, such as airport transportation and spa privileges. When one hotel makes
adjustments in prices or offerings, the other hotels follow suit. It is possible that
these hotels are:
4
COPYRIGHT@SARAHROSAPERAL 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
