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What is the difference between a joint venture and a strategic alliance?
  1. A joint venture is legally binding, while a strategic alliance is not.
  2. Strategic alliances can be accused of illegal price fixing.
  3. Joint ventures involve the creation of third-party entities.
  4. Joint ventures can only include two companies; a strategic alliance can have any number.
Explanation
Answer: C - A joint venture involves the creation of a third-party entity, while a strategic alliance does not. In a joint venture, the new company is owned by the companies and investors involved.
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