Homework 6 [Chapter 8-12]
1. Which of the following is an advantage of collaborating?
a. It enables a firm to obtain necessary skills quickly by developing them in-house.
b. It increases a product’s cycle time.
c. It gives firms more flexibility. √
d. It helps firms to increase their asset commitment.
2. Allured Architecture collaborated with Maze & Matiz to form a new architecture firm
called AllureAmaze Inc. Both the firms had a significant equity stake in the new entity. This
collaboration is an example of _____.
a. licensing
b. a joint venture √
c. outsourcing
d. contract manufacturing
3. Which of the following is true of outsourcing?
a. It involves significantly less transaction costs.
b. It is a way to meet market demand with a long-term capital commitment.
c. It is a great way for a company to develop in-house manufacturing capabilities.
d. It carries a risk of proprietary technology being expropriated by the contract
