The C.E.O. of Stability, Inc., a U.S. company, is considering the wisdom of an alliance with a Malaysian company. She is concerned about the fact that the Malaysian company wants to own a large percentage of the venture. The CEO
A. is correct to be concerned because this indicates a lack of trust by the Malaysian company.
B. should be concerned because the Malaysian company will be less inclined to share its expertise with the U.S. firm if it owns a dominant interest in the venture.
C. the CEO should realize that if the Malaysian company owns a large equity stake in the venture it will have more incentive to make the venture a success.
D. the CEO's concern probably arises from unconscious prejudice, and this indicates that she will be unable to form a trusting relationship with her Malaysian counterparts.
Answer: C
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