A relationship whereby two or more entities cooperate (but do not form a separate company) to achieve the strategic goals of each is called a ________.
A) joint venture
B) strategic alliance
C) wholly owned subsidiary
D) multistage buyback

Question

Quizplus · Accepted Answer

A strategic alliance is a relationship between two or more entities where they cooperate to achieve their strategic goals without forming a separate company. A joint venture involves the creation of a separate legal entity in which each partner owns a share. Wholly owned subsidiary means a company is wholly owned and controlled by another company. Multistage buyback is a process where a company buys back its own shares in several stages. Therefore, the best choice for this question is B, strategic alliance.

A Relationship Whereby Two or More Entities Cooperate (But Do