Carl owns a software firm, and mike owns a computer hardware manufacturing firm. they decide to create an alliance in order to manufacture laptops and desktops using the shared competencies of their respective firms. when creating the alliance, they make sure that each of them invests 50% capital and that they would each own a specified right to a percentage of the profits from the alliance. the collaborative relationship in this scenario is known as _____.

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23-05-2022
Business

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Carl owns a software firm, and mike owns a computer hardware manufacturing firm. they decide to create an alliance in order to manufacture laptops and desktops using the shared competencies of their respective firms. when creating the alliance, they make sure that each of them invests 50% capital and that they would each own a specified right to a percentage of the profits from the alliance. the collaborative relationship in this scenario is known as _____.

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dubeyshailja64 dubeyshailja64 · Answer 1 · 2022-06-02T11:39:20+02:00

The collaborative relationship discussed in the passage is known as relational governance which facilitates growth and provides solutions.

What is a relational governance mechanism?

The relational governance mechanism emphasis on equal distribution of roles and responsibilities along with financial investment to make the decision in any corporation. This is based on mutual understanding and trust.

In this scenario, Carl owns a software firm, whereas mike owns hardware manufacturing bringing equal investment with 50%capital. they also shared their skills and competencies to encourage better working in the organization.

Therefore, they implement a relational governance relationship where they share equal rights in the business.

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