Relationship-specific investments are investments that:
A)increase your bargaining power.
B)contractually obligate a business partner to continue working with the investor.
C)are worth more in the context of a specific business relationship.
D)create seller-to-seller training programs.

Question

Quizplus · Accepted Answer

Relationship-specific investments are those investments that have more value in the context of a specific business relationship. These investments are made to enhance the overall quality of the relationship with a partner, making it more profitable or productive for both parties. Examples of relationship-specific investments could be developing a specialized product or service that is customized to meet the needs of a specific customer, creating a shared information system, or investing in personnel training that enhances communication between the parties.

Relationship-Specific Investments Are Investments That