Question

JumpStart Company and Rewind Inc. have entered into a cooperative strategy. Their legal teams have crafted lengthy and specific contracts to detail each aspect of the alliance, including the responsibilities of each partner, accounting procedures, and technical aspects. JumpStart and Rewind are using the _____ approach to manage their cooperative strategy.

a minimization
b reduction
c.explicit collusion
d.opportunity-maximization

Answer 1

JumpStart Company and Rewind Inc. are employing an opportunity-maximization approach to manage their cooperative strategy, which is focused on detailing all aspects of the alliance in their contracts.

Step-by-step explanation:

JumpStart Company and Rewind Inc. are using a detailed legal framework to manage their cooperative strategy, which indicates they are employing an opportunity-maximization approach. The essence of an opportunity-maximization approach is to detail the responsibilities of each partner comprehensively, ensuring clarity in the alliance’s objectives, the financial details like accounting procedures, and the technical operation aspects. This approach contrasts with a reduction or minimization strategy, which would focus more on risk and cost reduction. Explicit collusion, while it does involve cooperation, specifically refers to secret, illegal agreements which is not the case in a legal partnership or alliance as described. Therefore, the correct answer for the management method being used by JumpStart and Rewind is opportunity-maximization.