17 sands inc a financial firm partners with another

17) Sands Inc., a financial firm, partners with another organization that is at a similar stage along
the value chain. The parent organizations create a legally independent firm. However, Sands
brings more resources to the new firm than the other partner. Which of the following is being
exemplified in this case?
a) A contractual alliance
b) An equity alliance
c) A distribution agreement
d) A joint venture
Answer: d
Difficulty: Hard

Section Reference 1: Types of Alliances
Learning Objective 1: Explain the different types of strategic alliances, how they are governed
and the conditions under which each type is preferred.
Bloomcode: Application
Standard 1 : AACSB || Analytic
18) Which of the following statements is true about firms in a joint venture?
Difficulty: Medium
Section Reference 1: Types of Alliances
Learning Objective 1: Explain the different types of strategic alliances, how they are governed
and the conditions under which each type is preferred.
Bloomcode: Comprehension
Standard 1 : AACSB || Analytic
19) An organization wants to form a strategic alliance with another firm. The second firm is at
the same level along the value chain. It cannot contribute the same level of financial resources,
although it can contribute an extensive level of knowledge. In order to accommodate these
factors, they decide to start a legally independent firm. Which of the following alliances will be
best suited for the organization?
Difficulty: Hard
Section Reference 1: Types of Alliances
Learning Objective 1: Explain the different types of strategic alliances, how they are governed
and the conditions under which each type is preferred.
Bloomcode: Application
Standard 1 : AACSB || Analytic