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.

---

Definitions:

Crossing

The act of moving across something, such as a street or river, or a place where paths intersect or overlap.

Dotting

The action of marking or decorating with small drops or spots, often used in various art and design contexts.

Mammal

A class of warm-blooded vertebrate animals characterized by the presence of mammary glands, which in females produce milk for feeding their young.

Unusual

Something that is not common, ordinary, or expected, often arousing interest due to its difference.