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HealthTech Wanted Its Research Partner, an R&D Company, to Develop

Question 54

Multiple Choice

HealthTech wanted its research partner, an R&D company, to develop a cancer vaccine. However, the project required huge capital investments, and its research partner was not ready to solely face the risks involved. Thus, to gain its partner's confidence and to prove its involvement, HealthTech invested $100 million in the project. This investment made by HealthTech will result in a


A) cartel.
B) credible commitment.
C) corrective action.
D) parent-subsidiary relationship.

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