An alliance in which two firms make equity investments in a third legal entity is referred to as a(n) ________.
A) equity alliance
B) joint venture
C) strategic alliance
D) consortium

Question

Quizplus · Accepted Answer

This type of alliance is called a joint venture, where two firms make equity investments in a third legal entity. In a joint venture, the parties involved share risks and rewards of the venture.

An Alliance in Which Two Firms Make Equity Investments in a Third