Strategic investments in an equity-based alliance involve one partner investing in another, while cross-shareholding involves both partners investing in each other.

Question

Quizplus · Accepted Answer

Strategic investments and cross-shareholding are two different forms of equity-based alliances, where strategic investment involves one partner investing in another and cross-shareholding involves both partners investing in each other. This is correct, strategic investments typically involve one partner investing in another, while cross-shareholding involves both partners investing in each other.

Strategic Investments in an Equity-Based Alliance Involve One Partner Investing