A _____ Is a Strategic Alliance in Which Two Existing

question 50

Multiple Choice

A _____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.

• A)joint venture
• B)franchise
• C)wholly owned affiliate
• D)global new venture
• E)cooperative contract

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Definitions:

Net Income

The net profit figure for a company, achieved by subtracting all operational costs and tax liabilities from its revenue.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a portion of its profits.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, typically associated with ownership of 20-50% of voting stock.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control them.