If Luxury Cabinets, a Kitchen Cabinet Manufacturer, Builds a Cabinet

Multiple Choice

If Luxury Cabinets, a kitchen cabinet manufacturer, builds a cabinet plant near Big Woods, a timber harvesting farm, to reduce the costs of transporting lumber, _______ potentially faces a hold- up problem as the firm invested in a ______.

A) Luxury Cabinets; transaction- specific asset
B) Big Woods; transaction- specific asset
C) Luxury Cabinets; negotiation asset
D) Big Woods; negotiation asset