When partners in a strategic alliance form a new business unit in which each takes an ownership position,they have created a:
A)joint venture.
B)collusion organization.
C)development team.
D)merged organization.

Question

Quizplus · Accepted Answer

When partners in a strategic alliance form a new business unit in which each takes an ownership position, they have created a joint venture. A joint venture is a partnership in which two or more organizations create a separate legal entity to undertake a specific project or set of activities. It allows the partners to share risks, costs, and resources while pursuing strategic objectives. The joint venture is controlled and managed jointly by the partners according to the terms of the agreement.

When Partners in a Strategic Alliance Form a New Business