The risks of being accused of collusion are MOST likely under what type of alliance?
A)equity-based vertical complementary alliance
B)equity-based horizontal complementary alliance
C)nonequity-based vertical complementary alliance
D)nonequity-based horizontal complementary alliance

Question

Quizplus · Accepted Answer

Nonequity-based horizontal complementary alliances involve firms that are potential competitors collaborating in research and development, joint manufacturing, or distribution ventures. These types of alliances often raise concerns around collusion, as the collaborating firms may be seen as attempting to manipulate the market in their favor. In contrast, equity-based alliances typically involve firms from unrelated industries collaborating in a complementary fashion, which may have less potential for collusion concerns.

The Risks of Being Accused of Collusion Are MOST Likely