💼 Pre-MBA Exam Prep

Strategic alliances differ from mergers because:

A They involve stock exchange
B Companies cooperate while remaining independent entities, sharing resources without full ownership combination
C They are always hostile
D They are permanent

✓ Correct Answer: Option B

Strategic alliance: cooperative arrangement maintaining independence. Types: joint ventures, licensing, co-marketing. Lower commitment than M&A but less control. Useful for market entry, R&D sharing.

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