Question

The main difference between an equity and a nonequity alliance is that A equity alliances are...

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

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Answer #1

B. while equity alliances involve ownership, nonequity alliances are contractual relationships without ownership.

Equity alliances actually involve ownership whereas, non equity are contractual without ownership

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