Coastal Pharma and Brainwave Technologies Have Together Invested and Created

question 38

Multiple Choice

Coastal Pharma and Brainwave Technologies have together invested and created a new organization, InnerView, to focus on developing diagnostic devices. Through this new firm, both companies are attempting to combine their core competencies to innovate and reduce their risks associated with transaction-specific investments. However, the new organization operates independent of Coastal Pharma and Brainwave Technologies. Which of the following alternatives to integration does this scenario best illustrate?

• A) a joint venture
• B) a franchisee
• C) a licensing contract
• D) a corporate acquisition

---

Definitions:

Information Processing

The handling, organizing, and manipulation of data by computer systems or the human brain.

Arithmetic Calculations

Mathematical operations involving numbers to perform basic functions such as addition, subtraction, multiplication, and division.

ALU

Arithmetic Logic Unit, a critical component of a CPU that handles all arithmetic and logical operations, including addition, subtraction, and logical comparisons.

Ultrabook

A full-featured but lightweight laptop computer that features a low-power processor and a solid-state drive; it tries to reduce its size and weight to extend battery life without sacrificing performance.