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Annette [7]
4 years ago
10

Luxura Inc. is a large cosmetics company that made an initial small investment in a start-up company, GreenDream, that was devel

oping an organic face lotion. This gave Luxura controlling interests in the start-up company. However, GreenDream soon began to have financial difficulties because of principal-agent problems. As a result, Luxura did not invest in the next stage of development and pulled out of the company. This approach to strategic alliance is referred to as a:A. break-even analysis.B. partial joint venture.C. credible commitment.D. real-options perspective.
Business
1 answer:
ludmilkaskok [199]4 years ago
8 0

Luxura Inc. is a large cosmetics company that made an initial small investment in a start-up company, GreenDream, that was developing an organic face lotion. This gave Luxura controlling interests in the start-up company. However, GreenDream soon began to have financial difficulties because of principal-agent problems. As a result, Luxura did not invest in the next stage of development and pulled out of the company. This approach to strategic alliance is referred to as a:A. break-even analysis.B. partial joint venture.C. credible commitment.D. real-options perspective.

D

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