What form of corporate strategic alliance occurs when two independent companies create a separate, jointly owned legal entity to pursue shared market opportunities?
AJoint Venture
BMerger
CLicensing Agreement
DFranchising
Explanation
• A Joint Venture involves two or more parent companies pooling resources to form a distinct, independent legal business entity.
• A Strategic Alliance involves cooperation without forming a new legal entity.
• Licensing grants permission to use intellectual property in exchange for royalties.
Exam Relevance
- Topic: Strategic Management
- Subtopic: Strategic Alliances

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