The most common type of alliance is a(n) Blank______.Multiple choice question.non-equity alliancejoint ventureequity allianceacquisition
Question
The most common type of alliance is a(n) ______.
Multiple choice question.
- non-equity alliance
- joint venture
- equity alliance
- acquisition
Solution
Breakdown the Problem
- Identify the types of alliances listed in the options:
- Non-equity alliance
- Joint venture
- Equity alliance
- Acquisition
Relevant Concepts
- Understand the definitions of each type of alliance:
- Non-equity alliance: A partnership where firms collaborate without sharing equity.
- Joint venture: A separate entity created by two or more firms that share ownership and control.
- Equity alliance: Involves one company taking an ownership stake in the other.
- Acquisition: One company purchases another, usually controlling its operations.
Analysis and Detail
- Determine which type of alliance is the most common. Non-equity alliances are typically the most prevalent form because they are easier to form, do not require shared ownership, and allow firms to collaborate without significant commitments.
Verify and Summarize
- Based on the definitions and characteristics of each type of alliance, the answer can be verified and summarized.
Final Answer
The most common type of alliance is a non-equity alliance.
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