1) A firm can gain access to external technological capabilities through joint ventures and/or mergers with companies who possess the desired technology.
Answer – True
2) The development and maintenance of alliances have monitoring costs.
Answer – True
3) An example of a formal form of alliance is a franchise agreement.
Answer – True
4) The goal in forming a strategic alliance is to develop relationships where the strategic advantages outweigh the transaction costs involved with the alliance.
Answer – True
5) Success rates for franchisees are slightly lower than most other forms of startup businesses.
Answer – False
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