ACCA Strategic Business Leader (SBL) Practice Exam

Which of the following is an alternative to strategic alliances?

1. Joint ventures

2. Commissions

3. Mergers

4. Acquisitions

The correct answer is: Joint ventures

A strategic alliance is a cooperative agreement between two or more businesses to work together towards a common goal while remaining independent. While joint ventures can be viewed as a form of a strategic alliance, they differ in that they involve creating a new entity that is jointly owned by the parties involved. This makes joint ventures a more integrated approach to collaboration compared to traditional strategic alliances, which do not involve the creation of a new company. In the context of your question, the most fitting alternative to strategic alliances is joint ventures because they represent a deeper commitment between the parties through shared ownership and operational control. Each party contributes resources but operates as a distinct entity with its own operational decisions, aligning closely with the concept of mutual benefit that drives strategic alliances. Mergers and acquisitions, while also forms of collaboration, typically imply a stronger, more permanent union of companies under a single entity or the takeover of one company by another. Commissions do not represent a collaborative arrangement like strategic alliances and involve payment for services rendered rather than a partnership or shared goals.