ITPEC IP April 2023 Question 80
ITPEC IP April 2023 — Question 80 of 100
An alliance is cooperation between independent companies through arrangements such as technological tie-ups, production or sales cooperation, and joint ventures. The partners combine selected capabilities or resources for mutual benefit while retaining their separate corporate identities. This is exactly the relationship described in option (c).
Answer (c)
Why not others:
- (a) describes a merger or acquisition, which integrates ownership rather than merely forming a cooperative alliance
- (b) describes outsourcing non-core activities to an external provider
- (d) describes a holding company that controls group companies through stock ownership
Key rule: A strategic alliance strengthens cooperation without eliminating the participating companies' independence.
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