An Agreement Between fiRms to Create a Separate, Co-Owned Entity

question 269

Multiple Choice

An agreement between firms to create a separate, co-owned entity established to pursue a joint goal is called a:

• A) Consolidation.
• B) Strategic alliance.
• C) Joint venture.
• D) Merged alliance.
• E) Takeover project.

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Definitions:

Operations Technology

The hardware and software solutions used to optimize and automate business operations.

Mechanistic Bureaucracy

An organizational structure that emphasizes detailed procedures and rules, a clear hierarchy, and a focus on task completion, similar to a machine bureaucracy.

Organic Bureaucracy

An adaptable and flexible organizational structure that allows for responsiveness and change, contrasting with more rigid bureaucracies.

Vertical Keiretsu

Vertical keiretsu refers to a type of business arrangement in Japan where a group of companies, primarily suppliers, are linked through cross-shareholdings and share a major manufacturer or assembler at the top.