Investments that are worth more if the current business relationship continues are known as _____ investments.
A)relationship-specific
B)human capital
C)context-based
D)interdependent

Question

Quizplus · Accepted Answer

Relationship-specific investments are those that are more valuable if the current business relationship continues. These investments can include specialized equipment, training specific to the current business, or specific processes or procedures that only work in the current business relationship. These investments are less valuable if the relationship ends, which can create a disincentive to terminate the relationship.

Investments That Are Worth More If the Current Business Relationship