Question

First Health Inc. and Quadra Software Solutions Inc. have decided to share resources to produce a meal planning program for use at home. The two firms have decided to work together on the project since they cannot develop the project solely with their individual resources. Both organizations will own the resulting program. This effort is known as a

a. vertical integration. b. organized divestiture. c. hostile takeover. d. strategic alliance. e. related diversification.

Answer 1

d. strategic alliance.

Explanation:

A strategic alliance -

It is the practice between any two companies , which gives both of them some mutual profit by working on a common project , is known as a strategic alliance .

The idea behind starting a strategic alliance is to improve or expand the company in the upcoming market , this can be a short term or a long term agreement plan .

This agreement tends to benefit both the company .