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

Question

Quizplus · Accepted Answer

A joint venture is a strategic alliance where two or more firms collaborate to create a new independent organization. The partners contribute resources, share expenses and risks, and jointly own the new entity. This form of alliance allows parties to combine their strengths and mitigate their weaknesses, while also sharing the profits and control over the venture.

What Type of Strategic Alliance Involves Two or More Firms