An alliance that involves neither the assumption of equity interest nor the creation of separate organizations is referred to as a(n) ________.
A) joint venture
B) equity alliance
C) nonequity alliance
D) consortium

Question

Quizplus · Accepted Answer

A nonequity alliance is an alliance in which there is no assumption of equity interest or creation of separate organizations. This means that the companies involved in the alliance work together without joint ownership or separate legal entities. Joint ventures involve the creation of a separate legal entity, equity alliances involve the assumption of equity interest, and consortia are similar to joint ventures but involve multiple companies rather than just two.

An Alliance That Involves Neither the Assumption of Equity Interest