Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. This encourages the supplier to align its incentives with Velara's needs. Which of the following is being exemplified in this case?

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An equity alliance involves one company taking an ownership interest in another company to align their incentives and goals. In this case, Velara Inc. owns a 35% stake in the supplier that provides their raw materials, thus creating an equity alliance between the two companies.