The first concern in determining whether a relationship should be based on contract or equity is:
A)The kind of resources and capabilities that are shared.
B)Direct monitoring and control.
C) Real options.
D) Institutional constraints.

Question

Quizplus · Accepted Answer

The first concern in determining the basis of a relationship is understanding the kind of resources and capabilities that are shared, as this will influence whether a contract or equity-based relationship is more appropriate.

The First Concern in Determining Whether a Relationship Should Be