Bubbles Beverages Company entered into a sponsorship agreement with Play Big Stadium.According to this agreement, the company will sponsor the stadium to maintain its courts regularly.In return, the stadium should allow only company products to be sold inside its premises.Identify the type of business relation between Bubbles Beverages Company and Play Big Stadium.
A)Limited partnership
B)Investment alliance
C)Limited liability partnership
D)Strategic alliance

Question

Quizplus · Accepted Answer

The business relation between Bubbles Beverages Company and Play Big Stadium is a strategic alliance, in which both parties enter into an agreement for mutual benefits. Bubbles Beverages Company will sponsor the stadium for maintenance, and in return, it will have exclusive rights to sell its products in the stadium premises. This is a strategic alliance as the companies are not merging or forming a new entity but merely collaborating to achieve their business goals.

Bubbles Beverages Company Entered into a Sponsorship Agreement with Play