Which of the Following Interorganizational Linkage Mechanisms Allows an Organization

question 13

Multiple Choice

Which of the following interorganizational linkage mechanisms allows an organization to minimize transaction costs and to avoid bureaucratic costs?

• A)Keiretsu
• B)Merger
• C)Third- party linkage mechanisms
• D)Co- optation

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Definitions:

Make-Or-Buy Decision

A decision-making process used by businesses to determine whether to produce goods in-house or purchase them from an external supplier.

Cost Recovery

The process of recouping the costs of an investment, expense, or other outlay of funds, often related to capital projects, taxes, or legal judgments.

Investment

The allocation of resources, usually money, into assets or projects expected to generate future profits or income.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with an organization's goal of maximizing owner value.