Question

Fervana Autos Inc., a large automobile company, made an initial small investment in a startup company that was developing a solar-powered car. This gave Fervana Autos controlling interests in the startup company. However, Fervana Autos had no obligations to make continued investments in the experiments of the startup company. It could invest in small amounts depending on the new product's success at each stage of its development. If the product proved to be successful, Fervana Autos would have the right to buyout the startup company. This approach to strategic alliance is referred to as _____.A. Credible commitment B. A real options perspective C. Transaction cost economics D. A break-even analysis

Answer 1

B. A real options perspective

Step-by-step explanation:

This approach to strategic alliance is referred to as a real options perspective