The Transaction Cost Approach Implies That an Organization Should

question 51

Multiple Choice

The transaction cost approach implies that an organization should:

• A)use relatively informal linkage mechanisms to avoid bureaucratic costs.
• B)minimize dependence on others for scarce resources.
• C)change its domain to decrease transaction costs.
• D)select a mechanistic structure to reduce costs.

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Definitions:

Mainstream Culture

The dominant set of cultural practices, beliefs, and values that are widely shared and accepted within a particular society.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives.

Collective Action

The collective effort made by a group aiming to improve their position and accomplish a shared goal.

Faculty Association

An organization representing the professional and labor interests of faculty members in colleges and universities.