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:

Fixed Action Pattern

A sequence of instinctual behaviors that once started, continue to completion without further external triggers.

External Control

The perception or belief that one's life outcomes are influenced by external forces or other people rather than one's own efforts.

Stereotyped

A fixed, generalized idea or image about a particular group of people or thing, often oversimplifying their characteristics.

Ethological Theory

A perspective within biology and psychology that studies the evolutionary significance of behaviors and their adaptive function.