A nonequity strategic alliance exists when:
A) two firms join together to create a new company.
B) two or more firms develop a contractual relationship to share some of their resources to create a competitive advantage.
C) two partners in an alliance own unequal shares in the combined entity.
D) the partners agree to sell bonds instead of stock in order to finance a new venture.

Question

Quizplus · Accepted Answer

A nonequity strategic alliance involves firms developing a contractual relationship to share resources without creating a new company or sharing ownership.

A Nonequity Strategic Alliance Exists When