Riytiz Corp. and Tenkriz Corp. are two industrial developers. They plan to combine their funds, finances, risks, and expertise to build the Opobip Bridge. This bridge is said to connect two states that are not connected by a highway. In this scenario, the venture between Riytiz Corp. and Tenkriz Corp. would be called a _____.
A) strategic alliance
B) wholly owned affiliate
C) conglomerate
D) franchise

Question

Quizplus · Accepted Answer

A strategic alliance is a business relationship between two or more companies to achieve a shared goal, such as building the Opobip Bridge. The companies involved remain separate legal entities but work together to pool resources and expertise. This is the most appropriate option for the scenario described. A wholly owned affiliate would involve one company owning another, which is not the case here. A conglomerate is a group of companies with diverse business interests, which does not apply to this situation. Franchising involves a business owner licensing their operation to another party, which is also not relevant here.