Which of the Following Statements Is True About Specialized Assets

Multiple Choice

Which of the following statements is true about specialized assets?

A) The value of a specialized asset significantly increases in its next-best use.
B) When one firm must invest in specialized assets to supply another, mutual dependency is created.
C) When substantial investments in specialized assets are required, firms prefer to contract it out to a supplier.
D) A specialized asset is a flexible manufacturing technology that can be put to multiple uses.
E) Using a specialized asset allows firms to switch their orders easily between suppliers.