Which of the following type(s) of strategic alliance is the most formal?
A) Long-term contracts
B) Network
C) Joint venture
D) Minority ownership

Question

Quizplus · Accepted Answer

Joint ventures are the most formal type of strategic alliance as they involve the creation of a new legal entity with shared ownership and control between the partnering firms. This entity operates independently and requires significant investment and commitment from both parties, making it a more formal and structured relationship compared to other types of alliances like long-term contracts or networks. Minority ownership is also a formal type of alliance, but it does not involve the creation of a new entity and may not require as much investment or commitment as a joint venture.

Which of the Following Type(s) of Strategic Alliance Is the Most