At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach?
A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4

Question

At which stage in the formation of alliance must a firm decide whether to take a contract or an equity approach? 
A) Stage 1 
B) Stage 2 
C) Stage 3 
D) Stage 4

Quizplus · Accepted Answer

The decision to take a contract or an equity approach should be made in Stage 2 of the formation of alliance, which involves partner selection and strategic planning. This is because the choice of approach can impact the partner selection process and the strategic goals of the alliance. Therefore, it is important to consider both options at this early stage to determine which approach aligns best with the alliance's objectives and the capabilities of potential partners.

At Which Stage in the Formation of Alliance Must a Firm