Financial ManagementQuestion 5509 of 217
All Questions

12. Relationship being considered between PNL and CMP is indicating:

Options

AHorizontal Integration
BMerger and Acquisition
CStrategic Alliance
DVertical Integration
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option CStrategic Alliance

All Options:

  • AHorizontal Integration
  • BMerger and Acquisition
  • CStrategic Alliance
  • DVertical Integration

Ad

Detailed Solution & Explanation

Correct Answer: Option **C** Explanation: A collaborative relationship between two or more companies to achieve common goals while maintaining their independent corporate existence is known as a **Strategic Alliance**.
In Case Scenario III: * PNL and CMP want to build a close, collaborative relationship based on their respective core competencies. * The scenario explicitly states: *"...where both will continue to maintain their respective independent existence."* * This is a fundamental characteristic of a **Strategic Alliance**, which distinguishes it from: 1. *Mergers & Acquisitions:* Where one company is absorbed or they combine to form a single entity, losing independent existences. 2. *Horizontal/Vertical Integration:* Which refers to ownership-based integration along the same level or different stages of the supply chain.
Hence, **Option C** is the correct answer.

More Questions from Financial Management

Ready to Master Financial Management?

Practice all 217 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free