Ingente Corp. and Ventruni Corp. will be combining their resources to build the largest railway system in the world. Both companies will equally share costs and profits from this venture. This form of global business is an example of a _____.
A) strategic alliance
B) wholly owned affiliate
C) conglomerate
D) franchise

Question

Quizplus · Accepted Answer

The combination of resources and shared costs/profits indicates that this is a strategic alliance, which is a partnership between two or more companies to combine their resources and achieve a common goal. Wholly owned affiliates involve one company fully acquiring another, while conglomerates involve a company operating in multiple unrelated industries. Franchises involve a company granting the right to another party to use their brand and business model in exchange for royalties or fees.