Question

Stunning Motors, Ltd. makes economy autos for the world market. Stunning has decided to branch out and produce economical, fuel efficient motor bikes. They are exploring a joint venture With Bay Bikes, a Chinese motorbike company active in the Chinese market. In the meantime, before any formal agreement on a joint venture is reached, Bay Bikes is working with Stunning's R&D engineers to create a feasibility study on the Chinese market potential. This is an example of ___________

a. product differentiation
b. non-equity-based strategic alliance
c. sole proprietorship
d. entrepreneurial orientation

Answer 1

Answer:

b. non-equity-based strategic alliance

Explanation:

In the case of the non-equity strategic alliance, the organizations develop the agreement for sharing the resources without developing the distinct entity or equity i.e. shared.

Non-equity alliances are considered to be loose and not formal as compared to the partnership involving equity.

So as per the given situation, the option b is correct