How does a joint venture differ from a strategic alliance?
A) A joint venture is where two organisations act as venture capitalists to fund the development of a third organisation, whereas an alliance involves contributing expertise rather than money.
B) The two terms are interchangeable and both describe collaboration between two or more organisations.
C) A joint venture is when two or more organisations set up a new enterprise, whereas a strategic alliance is a temporary collaboration to achieve a shared goal.
D) A joint venture is where two companies own equal shares in a third, whereas a strategic alliance is where one of them is a junior partner, owning less than an equal share.

Question

Quizplus · Accepted Answer

A joint venture involves creating a new entity by two or more organizations, while a strategic alliance is a temporary partnership to achieve specific objectives without forming a new entity.

How Does a Joint Venture Differ from a Strategic Alliance