Final answer:
The statement that an extended enterprise means a group of firms collaborating as a supply alliance is true. This strategic collaboration among firms aims to increase supply chain efficiency and can involve shared resources and common goals. It is a business practice aligned with the increasing interconnectivity in the global economy.
Step-by-step explanation:
The concept of the extended enterprise indeed refers to a network of firms or organizations that collaborate, often forming alliances such as strategic networks or virtual corporations. This collaboration is strategic and aims at increasing the efficiency and effectiveness of the supply chain. The statement that an extended enterprise means a group of firms collaborating as a supply alliance is true. This cooperative approach enables firms to leverage collective strengths, share resources, and capital, and synchronize their efforts to attain shared goals. These alliances are particularly advantageous as they create a cohesive unit with the capabilities to act as a more substantial entity. This is especially useful for industries where they can address common issues that can affect an industry as a whole, find strength in numbers, and benefit from governmental policies favourable to their collective interests.
An extended enterprise can also resemble other forms of business organization, such as a general partnership, where multiple stakeholders share the responsibilities and the profits of the business. In a broader economic context, such collaborations and alliances are essential as the global economy evolves. The rise of the WTO, regional trading blocs, and multinational corporations (MNCs) shows the increasing interconnectivity and the necessity for firms to extend their reach beyond national boundaries, joining forces to position themselves effectively in the global market.