The Main Difference Between an Equity and a Nonequity Alliance

Multiple Choice

The main difference between an equity and a nonequity alliance is that

A) equity alliances are restricted to two partners while nonequity alliances may have any number of partners involved.
B) while equity alliances involve ownership, nonequity alliances are contractual relationships without ownership.
C) equity alliances require that each partner own an equal percentage of the new organization that is formed, while nonequity alliances involve unequal proportions of ownership between partners.
D) equity alliances are allowed between U.S. firms, but U.S. firms must make nonequity alliances with international firms.