Question

Vibgyor Inc., a manufacturer of smartphones, has entered into a 15-year partnership with a software company to develop sophisticated operating systems and innovative mobile applications for its cell phones. This would mean that both the companies will have to mutually share their resources, knowledge, and capabilities to develop a superior product. What is the relationship between Vibgyor and the software company best referred to as in this scenario?

A. an acquisition
B. a strategic alliance
C. a leveraged buyout
D. a proprietorship

Answer 1

B. A strategic alliance because vibgyor inc most likely signed a contract with the software company since it is a 15 year partnership. therefore, if they partner together the success rate would go up since they both have the capabilities to make a superior product and also the fact that have mutual resources and knowledge.