Which of the following is a disadvantage that a firm faces when forming a strategic alliance?

a) Risks associated with the fixed costs of a business are more for an alliance than an independent firm.
b) A firm can give away more than it receives when forming an alliance.
c) Technological standards cannot be established for an industry when alliances exist.
d) Forming an alliance would hinder the growth of complementary skills and assets.

Ans: b) A firm can give away more than it receives when forming an alliance.