Hewlett-Packard Licenses Some of Its Intellectual Property Through Strategic Alliances

question 125

Multiple Choice

Hewlett-Packard licenses some of its intellectual property through strategic alliances. Which of the following is correct about this relationship?

• A)This is a joint venture because in licensing arrangements, a new company is created.
• B)This is an equity strategic alliance because licensing does not involve the creation of a new company, but does involve an equity commitment.
• C)The firms risk charges of collusion because most licensing relationships between competitors involve explicit collusion.
• D)This is a nonequity strategic alliance with Hewlett-Packard leveraging its unique capabilities.

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Definitions:

Mutual Trust

The shared belief between parties that each will act in the interest of the other, critical for successful personal and professional relationships.

Supply Chain

A configuration of groups, participants, operations, insights, and resources tasked with the delivery of a product or service from the producer to the purchaser.

Partnering Relationships

Strategic alliances between businesses or organizations aimed at achieving common goals through cooperation.

Suppliers

Businesses or individuals that provide goods or services to another business, often as part of a supply chain.