Luxura Inc

Multiple Choice

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.