Which of the following is true of strategic alliances?
A) It is a type of acquisition by one firm of another.
B) It does not involve joint purchasing of stocks of another company.
C) It is not a merger between two independent firms.
D) It does not involve the sharing of existing distribution channels between the firms.

Question

Quizplus · Accepted Answer

A strategic alliance is a partnership or agreement between two or more independent firms to achieve a specific goal by sharing resources, knowledge, or capabilities. It is not a merger or acquisition, as the firms remain independent. Joint purchasing of stocks or assets is possible in some strategic alliances, but not a necessary requirement. Sharing of existing distribution channels can also be a part of a strategic alliance.

Which of the Following Is True of Strategic Alliances