Long-term agreements between two or more companies to jointly develop new products or processes that benefit all of the companies involved in the agreement are known as:
A) horizontal integration.
B) outsourcing.
C) strategic alliance.
D) joint venture.
E) vertical integration.

Question

Quizplus · Accepted Answer

Long-term agreements between two or more companies to jointly develop new products or processes that benefit all of the companies involved in the agreement are known as strategic alliances. Horizontal integration involves merging with or acquiring another company in the same industry, outsourcing involves contracting work to a third-party provider, joint ventures involve forming a separate legal entity with another company, and vertical integration involves acquiring or merging with a company that operates at a different level of the supply chain.

Long-Term Agreements Between Two or More Companies to Jointly Develop