An Organization Wants to Form a Strategic Alliance with Another

question 56

Multiple Choice

An organization wants to form a strategic alliance with another firm. The second firm is at the same level along the value chain. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. In order to accommodate these factors, they decide to start a legally independent firm. Which of the following alliances will be best suited for the organization?

• A)A contractual alliance
• B)An equity alliance
• C)A distribution agreement
• D)A joint venture

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Definitions:

Panic

Sudden uncontrollable fear or anxiety, often causing wildly unthinking behavior.

Check Your Work

The act of reviewing your tasks or solutions for errors or accuracy before considering them complete.

Test-Taking Strategies

Techniques and approaches employed to improve performance and outcomes during examinations.

Pace Himself

To regulate one's speed or rate of activity to avoid overexertion and to achieve more effective results over time.