Which of the Following Statements Is True of an Equity

question 30

Multiple Choice

Which of the following statements is true of an equity alliance?

• A) An equity alliance is based on contractual agreements rather than partial ownership.
• B) In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible.
• C) In an equity alliance, a standalone organization is created that is jointly owned by two or more parent companies.
• D) An equity alliance creates weaker ties between the alliance partners when compared to a non-equity alliance.