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Oil & Gas Limited and Small Tech Inc

Question 32

Multiple Choice

Oil & Gas Limited and Small Tech Inc.announced an agreement to develop a new technology for the extraction of gas.Oil & Gas Limited will contribute financial resources and its expertise in gas extraction,while Small Tech will provide its expertise in R&D.To ensure the success of the collaboration,prior to the alliance,both companies should


A) approach prospective clients to get their perspective on the agreement and ensure that there is a market for the new technology they want to develop.
B) verify the prospective partner's capabilities and assess its strengths and weaknesses.
C) adopt a code of conduct that will clarify the responsibilities of each partner and the ethical behavior that will be expected of each partner.
D) agree on the expected revenues and profit sharing.

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