A non-equity strategic alliance exists when:
A)two firms join together to create a new company
B)a contract is granted to a company to supply, produce or distribute a firm's goods
C)two partners in an alliance own equal 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 non-equity strategic alliance is a partnership between two or more firms that focuses on a specific project or activity without creating a new company or uniting under a common corporate structure. This type of alliance could involve a contract where one firm agrees to produce, supply or distribute the goods of another firm without any exchange of equity or ownership. Therefore, option B is the correct answer. The other options describe different types of partnerships or financing arrangements that do not fit the definition of a non-equity strategic alliance.

A Non-Equity Strategic Alliance Exists When