One Disadvantage of Relational Contracting Is That It May Cause

question 79

True/False

One disadvantage of relational contracting is that it may cause firms to abandon established relationships.

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Definitions:

Cost Benefits

An analysis or the assessment of the gains (benefits) obtained from a decision, compared to the costs involved in taking that action.

Shared Leadership

A leadership model that disperses leadership responsibilities among members of a team or organization, emphasizing collaboration and empowerment.

Cohesion

A social science term referring to the bonding together of members of an organization or group, facilitating solidarity and working towards common goals.

Challenges

Difficulties or obstacles that need to be overcome, often requiring effort, skill, or strategy.