France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of the combined company. This is best described as a(n) ________.
A) non-equity strategic alliance
B) manufacturing joint venture
C) global licensing agreement
D) equity strategic alliance

Question

Quizplus · Accepted Answer

TCL-Thomson Electronics is an equity strategic alliance as it involves the formation of a new legal entity where both companies have ownership stakes. In this case, Thomson owns 33% and TCL owns 67% of the combined company.

France's Thomson Electronics Combined with China's TCL to Form TCL-Thomson