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Question
Under what circumstance would it be logical to leave contracts vague and open-ended?a) When performance may be ambiguous or difficult to measure.
b) When one of the firms in the contract is much larger than the other firm
c) If there are many other firms that can provide the same service or product
d) When the cost of writing the contract is too high
e) If the smaller of the two contracting firms is the upstream firm
Answer
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Related questions
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Which of the following terms is not the exercise or use of power by an individual?
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b) Regulation costs include costs of compliance
c) Regulation costs include increased business costs due to noncompliance
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e) Regulation costs include potential distortions to a market that may result from the imperfections of a given regulatory regime
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b) Culture reduces bargaining costs
c) Culture reduces transactions costs
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Q:
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Q:
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Q:
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Q:
What type of organizational structure is one that is comprised of a set of autonomous divisions led by a corporate headquarters office, assisted by a corporate staff that provides information about the internal and external business environment?
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Q:
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Q:
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Q:
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Q:
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Q:
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b) Cost centers are easy to judge against market counterparts performing similar functions
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Q:
What is a reason that companies might want to "buy" instead of "make" talent from the market when looking to acquire employees with a particular skill set?
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Q:
Which of the following processes is most representative of a less integrated firm on the "buy" end of the make-or-buy continuum?
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Q:
If a firm enjoys lower costs due to a complex labor-intensive process, which of the following statements would then be true?
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b) The firm is unconcerned with labor turnover
c) An example of this process could be the practice of anti-trust law
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Q:
Why might a large firm actually be at an advantage over a smaller firm with respect to labor?
a) Large generally pay a compensating differential to attract workers
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Q:
Which of the following is a source of diseconomies of scale at a large firm?
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c) Conflicts of interest
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Q:
Which of the following is not a reason a supplier might seek to sell in bulk?
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d) The cost of delivery is a fixed on a per unit basis
e) The supplier fears uneven sales
Q:
What force does Manne indicate constrains the actions of managers so that they stay focused on the goals of owners?
a) Market for corporate control
b) SEC
c) Corporate board
d) Corporate governance
e) CEO
Q:
What is the gaizhi process?
a) Valuing assets according to their earnings
b) A state-owned enterprise and private enterprise entering a joint venture
c) An increase of profitability prior to sale
d) Acquisition of large firms by private organizations
e) Restructuring whereby small firms are leased or sold
Q:
Relaxing of government regulation of economic activities occurred during the second half of the 20th century for all of the following except:
a) Airline industry
b) Workplace safety
c) Banking industry
d) Trucking
e) Healthcare industry