What term describes an arrangement between two organizations to pursue common goals and share resources, without forming a new legal entity?

What term describes an arrangement between two organizations to pursue common goals and share resources, without forming a new legal entity?

• A. Strategic Alliance
• B. Staffing
• C. Stakeholder
• D. Start-Up

Answer: (A)

When two organizations want to work together to achieve shared objectives while remaining legally separate, they enter into a strategic alliance. This kind of collaboration lets them pool resources, share expertise, or coordinate activities without creating a new legal entity. It’s different from staffing, which involves supplying personnel; from a stakeholder, which refers to a person or group with an interest in the organization; and from a start-up, which is about forming a new company. A strategic alliance specifically enables cooperation and resource sharing while each organization retains its own separate structure.

When two organizations want to work together to achieve shared objectives while remaining legally separate, they enter into a strategic alliance. This kind of collaboration lets them pool resources, share expertise, or coordinate activities without creating a new legal entity. It’s different from staffing, which involves supplying personnel; from a stakeholder, which refers to a person or group with an interest in the organization; and from a start-up, which is about forming a new company. A strategic alliance specifically enables cooperation and resource sharing while each organization retains its own separate structure.