Question: In class we discussed asset - specific investments ( which Hansmann refers to as firm - specific investments ) . What is their significance for

In class we discussed "asset-specific investments" (which Hansmann refers to as "firm-specific investments"). What is their significance for understanding the firm? A. Firm-specific investments are what the stock market tracks and the goal of the corporation is to maximize share value. B. Firm-specific investments is another word for "commodities"; and corporations have a right to sell commodities for profits. C. In order for firms to grow their business they need to get investors to give large amounts of capital not just to the industry generally but to their firm specifically. D. Firms (and ownership rights of the firm) are useful for inducing firm-specific investments from various parties who would otherwise be less willing to make such investments.

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