Identify a True Statement About a Nonequity Alliance

question 46

Multiple Choice

Identify a true statement about a nonequity alliance.

• A)It is an alliance in which two or more firms write a contract to govern their relationship.
• B)It is an alliance in which the collaborating firms supplement contracts with equity holdings in their alliance partners.
• C)It is an alliance in which collaborating firms create and jointly own a legally independent company.
• D)It is an alliance in which one of the collaborating firms invests in product development and the other focuses on sales.

---

Definitions:

Exclusive

Something that is limited to specific people, groups, or areas; often denotes a high level of quality or prestige.

Unique Nature

Refers to the distinct and unparalleled characteristics or qualities of an entity or phenomenon, setting it apart from others.

Exclusive Distribution

A distribution strategy in which a supplier grants exclusive rights to a single wholesaler or retailer to sell their product in a specific territory.

Mobile Commerce

The buying and selling of goods and services through wireless handheld devices, such as smartphones and tablets.