Which relationship involves two parties both investing in each other in an equity-based alliance?
A) Strategic alliance
B) Contractual alliance
C) Strategic investment
D) Cross-shareholding

Question

Quizplus · Accepted Answer

Cross-shareholding is a relationship in which two parties invest in each other by purchasing each other's shares. It is an equity-based alliance as both parties have a stake in each other's success. Strategic alliances and contractual alliances can involve investment, but they do not necessarily involve equity-based investments. Strategic investments refer to a company investing in another company, but it may not involve an equity-based alliance. Cross-shareholding involves two parties investing in each other by purchasing shares in each other's company. This creates an equity-based alliance where both parties have a vested interest in each other's success. Strategic alliance and contractual alliance may involve cooperation between parties, but do not necessarily involve an equity investment. Strategic investment may involve one party investing in another, but not necessarily a reciprocal investment.

Which Relationship Involves Two Parties Both Investing in Each Other