What Type of Strategic Alliance Involves Two or More Firms

question 29

Multiple Choice

What type of strategic alliance involves two or more firms creating and together owning a new independent organization?

• A)Partnership
• B)Tapered integration
• C)Close-knit semi-formal relationship
• D)Mutual agreement
• E)Joint venture

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Definitions:

Value Chain

The major business functions that add value to a company's products and services, such as research and development, product design, manufacturing, marketing, distribution, and customer service.

Vertically Integrated

A business structure in which a company controls multiple stages of the production process, from raw materials to final product delivery.

Effective Utilization

The extent to which a company or system makes optimal use of resources, time, and capacity.

Defective Units

Products that fail to meet quality standards and are not fit for sale or use as intended.