Which of the Following Statements Is True of an Equity

Multiple Choice

Which of the following statements is true of an equity alliance?

A) An equity alliance is based on contractual agreements rather than partial ownership.
B) In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible.
C) In an equity alliance, a standalone organization is created that is jointly owned by two or more parent companies.
D) An equity alliance creates weaker ties between the alliance partners when compared to a non-equity alliance.