Chapter 12—Making Alliances and Acquisitions WorkTRUE/FALSE1.Equity-based alliances include co-marketing, research and development, contracts, turnkey products, strategic suppliers, andstrategic distributors.2.Contractual alliances involve sharing of ownership.3.Cross-shareholding is based on financial interest between the firms.4.A joint venture (JV) is a form of equity-based alliance.5.Licensing is a form of equity-based alliance.6.Strategic investments in an equity-based alliance involve one partner investing in another.7.Cross-border mergers are more common than acquisitions.8.Mergers and acquisitions represent the largest proportion of foreign direct investment (FDI) flows.9.Antitrust authorities provide easy approvals for both alliances and acquisitions with less intervention.10.Formal government policies regarding entry mode requirements are generally becoming more conservative.11.
