Which of the Following Statements Is True About How an Arm's-Length

Multiple Choice

Which of the following statements is true about how an arm's-length relationship is used in strategic alliance?

A) Firms cannot buy inputs from multiple sources using the arm's-length relationship.
B) Firms typically use the arm's-length relationship between internal departments.
C) Firms that use the arm's-length relationship acquire the production facilities of other firms.
D) Firms use the arm's-length relationship to purchase inputs at the lowest price.