Question

A small software firm has formed a cooperative strategic alliance with a start-up company to develop the start-up's product, an app for smartphones. The start-up promised to connect the software firm with other start-up companies looking for software services. So far, the startup has not followed through, while the software firm has neared completion of its portion of the app development. Based on this scenario, which risk has manifested in the alliance between the software firm and the start-up company?a. The software firm has misrepresented its resources to the start-up.b. The start-up has failed to make its resources available to the software firm.c. The software firm has failed to make its resources available to the start-up.d. The start-up is acting opportunistically towards the software firm.

Answer 1

Answer:

B. The start-up has failed to make its resources available to the software firm.

Explanation:

When a cooperative strategic alliance is in place between two companies, they are united in achieving a specific and common objective. This form of alliance presents a lot of benefits to both companies.

There is an alliance between a small software firm and a start-up company to develop a product, which is an app for smartphones. After promises by the start-up to connect the software firm with other start-up companies looking for software services, they have failed to deliver.

This scenario clearly shows the risk in which the start-up company has failed to make its resources available to the software firm.