An Organization Wants to Form a Strategic Alliance with Another

question 34

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 financial resources,although it can contribute an extensive 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

---

Definitions:

Turnover

The rate at which employees leave a company and are replaced by new employees, affecting the company's performance and morale.

Decision-Making Error

Mistakes or flaws in the process of choosing between alternatives that can lead to suboptimal or harmful outcomes.

Salaries

Regular payments made to employees for their labor, typically expressed as an annual sum and paid in monthly or biweekly intervals.

Low Pay

refers to compensation for work that is considered insufficient according to industry standards, cost of living, or relative to the value of the work performed.