Which of the Following Statements Is True About How an Arm's-Length

question 37

Multiple Choice

Which of the following statements is true about how an arm's-length relationship is used in strategic alliance?

• A)Firms cannot buy inputs from multiple sources using the arm's-length relationship.
• B)Firms typically use the arm's-length relationship between internal departments.
• C)Firms that use the arm's-length relationship acquire the production facilities of other firms.
• D)Firms use the arm's-length relationship to purchase inputs at the lowest price.

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