Problem
One response of firms to increasing corporate liability for hazardous activities has been to spin off such activities to subsidiary firms whose liability is limited (Ringleb and Wiggins 1990). In other words, the firm replaces an internal transaction with a market transaction. Discuss this strategy as an optimal response to a change in the costs of organization relative to the costs of enforcing contracts.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.