Question

What is a strategic alliance between commercial parties typically characterized by?

A) A partnership in which the liability of one partner is limited to the amount of capital contribution.
B) A complete merger of the businesses involved.
C) A joint venture with equal ownership and control.
D) A sole proprietorship.

Answer 1

A strategic alliance between commercial parties is typically characterized by sharing responsibility and risk, complementary skills, and joint decision-making.

Step-by-step explanation:

A strategic alliance between commercial parties is typically characterized by:

1. Sharing responsibility and risk with one or more partners.
2. Partners having complementary skills to assist in managing the business.
3. Partners making all business decisions together.

Strategic alliances involve collaboration between two or more businesses to achieve common goals, such as expanding into new markets, sharing resources, or developing new products or services.