Fervana Autos Inc

question 67

Multiple Choice

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) a break-even analysis
• B) a real-options perspective
• C) credible commitment
• D) transaction cost economics

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Definitions:

30ºC

A temperature value, often referenced in the context of operational or environmental conditions under which equipment or processes are designed to function efficiently.

RSLogix

A programming software used for configuring and programming automation controllers, particularly those from Rockwell Automation's Allen-Bradley line.

Hardwired MCRs

Master Control Relays that are directly wired and function to control the operation of circuit blocks within a hardwired control system.

I/O Rack

The physical framework in a control system that holds input/output modules, interfacing the processors with field devices.