Question

Burgess Corp. manufactures a line of heavy construction equipment. The company has announced a contractual relationship with FS Electronics whereby FS will supply Burgess with advanced GPS navigation and guidance systems. These systems will be an option on all bulldozers, dump trucks, and road graders Burgess produces. Which of the following types of alliance is this?
a. joint ventureb. equity strategic alliancec. nonequity strategic allianced. competition reduction alliance

Answer 1

Answer:

The correct answer is c. non equity strategic alliance.

Explanation:

A "non-equity alliance" is that type of alliance through which, when making an investment, the assignment of obligations and profits is established in advance, this, in accordance with a previously stipulated agreement. Under this type of alliance, each of the entities operates individually, preserving its same organizational structure and without any shareholder control of one of the allies over the other.