Question

What type of alliance is a nonequity relationship between two firms, in which one firm handles the other's marketing or some aspect of the marketing process?

1) Strategic alliance
2) Joint venture
3) Franchise agreement
4) Outsourcing agreement

Answer 1

An outsourcing agreement is an alliance where a company hires another to handle its marketing without sharing equity. This allows the company to focus on core operations while utilizing external expertise for marketing.

Step-by-step explanation:

The type of alliance where one firm handles the other firm's marketing or some aspect of the marketing process without equity sharing is known as an outsourcing agreement. In this kind of partnership, one company utilizes the services of another for certain operational functions, such as marketing, rather than sharing ownership stakes or forming a separate entity together. This type of arrangement allows a firm to focus on its core competencies while relying on external experts for specific tasks.