Marcel, the CEO of an Automobile Company, Considers Extending His

Multiple Choice

Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. Which of the following statements is likely to strengthen Marcel's argument?

A) The relationship between the two firms is likely to be supported by equity investments.
B) The two firms are likely to seek a joint venture through the collaboration.
C) Cooperation between the two firms is not likely to depend on cross-equity holdings.
D) Interdependence between the two firms is not likely to be low.