Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a(n) ________.
A) licensing company
B) franchising company
C) strategic alliance
D) foreign subsidiary
E) import/export company

Question

Quizplus · Accepted Answer

A strategic alliance is a partnership between two or more companies that share resources, expertise, technology, and other assets in order to achieve a common goal. In this case, Adam's organization has formed a strategic alliance with a foreign company to develop new products by sharing resources and knowledge. Therefore, option C is the correct answer. The other options do not apply to the given scenario.  A licensing company grants licenses to other companies to use its products or services. A franchising company grants franchises to entrepreneurs to use its business model, brand, and support systems. Foreign subsidiary refers to a company that is fully owned by a foreign parent company. An import/export company simply buys and sells goods and services internationally.

Adam Has Been Hired by an Organization That Has a Partnership