Explain What a 'Strategic Alliance' Is, and How Organizations Can

question 8

Essay

explain what a 'strategic alliance' is, and how organizations can benefit from using them. Provide an example to support your answer.

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Definitions:

Commercial Substance

A consideration in accounting that a transaction has significantly changed the economic circumstances of the participants.

Gain or Loss

The difference between the sale price of an asset and its original purchase price, indicating the financial outcome of a transaction.

Service Potential

This refers to the capacity or ability of a service or asset to provide benefits or usefulness to an entity or its operations.

Land

An economic resource representing natural resources or ground, classified as a fixed asset in accounting, not subject to depreciation.