An agreement between ﬁrms to cooperate in pursuit of a joint goal is called a:
A) Consolidation.
B) Merged alliance.
C) Joint venture.
D) Takeover project.
E) Strategic alliance.

Question

Quizplus · Accepted Answer

A strategic alliance is an agreement between firms to cooperate in pursuit of a joint goal, typically with a limited scope and duration. Consolidation and merger involve the combination of two or more firms into a single entity. A joint venture involves the creation of a new entity owned jointly by two or more firms. Takeover project refers to the acquisition of another firm through a hostile or friendly bid.

An Agreement Between ﬁRms to Cooperate in Pursuit of a Joint