Hewlett-Packard licenses some of its intellectual property through strategic alliances. Which of the following is correct about this relationship?
a. This is a joint venture because in licensing arrangements, a new company is created.
b. This is an equity strategic alliance because licensing does not involve the creation of a new company, but does involve an equity commitment.
c. The firms risk charges of collusion because most licensing relationships between competitors involve explicit collusion.
d. This is a nonequity strategic alliance with Hewlett-Packard leveraging its unique capabilities.
Answer: This is a nonequity strategic alliance with Hewlett-Packard leveraging its unique capabilities.