Answer:
Of the various business-level strategic alliances, <u>VERTICAL COMPLEMENTARY</u> alliances have the most probability of creating sustainable competitive advantage, and <u>COMPETITION REDUCING</u> have the lowest.
Explanation:
A vertical complementary alliance takes place between a manufacturer and a supplier that come together. This usually happens through a requirements contract where the supplier agrees to only sell its materials, components and parts to the manufacturer and the manufacturer agrees to only purchase the components, materials and parts needed from that specific supplier.
On the other hand, competition reducing alliances are generally horizontal alliances where companies agree to work together in order to reduce uncertainty, instead of focusing on gaining market share.
Answer:
$2,700
Explanation:
First, we need to determine the value of the warehouse at sale.
Current value = $150,000 - $40,000
= $110,000
The gain or loss = Selling price - Current value
= $230,000 - $110,000
= $120,000.
We will also determine the partnership interest amount, which is;
= 51% × $230,000
= $117,300
This means that the interest value of $117,300 will be used to buy off the warehouse.
Hence, Huey's gain and taxable gain will be;
= $120,000 - $117,300
= $2,700
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