Vanguard Group is very careful about acquiring the right type of customer

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.

Which of the following is true concerning the accounting for a foreign investment under the cost method? a. Investment income is translated at the exchange rate on the dividend declaration date. b. Investment income is translated using the average exchange rate for the year

c. Investment income is based on the investee's net income adjusted for the excess of purchase price over book value. d. Investment income is based on the investee's net income without adjusting for the excess of purchase price over book value.