Which Characteristic of Transaction-Specific Investments Explains the Necessity for Vertical

question 59

Multiple Choice

Which characteristic of transaction-specific investments explains the necessity for vertical integration?

• A)The lack of a competitive market between them
• B)The fact that each of the two producers has the opportunity to "hold up" the other
• C)Low transaction costs in that relationship
• D)The fact that a and b together form an untenable situation for separate owners.

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Definitions:

Task Characteristics

Attributes and aspects of a job or task that impact how it is perceived, how it is performed, and the outcomes it produces.

Job Characteristics Model

A framework that suggests jobs can be designed to enhance employee motivation, satisfaction, and performance by addressing core job dimensions.

Job Enrichment

The process of making a job more rewarding, challenging, and interesting by adding more meaningful tasks and duties.

Motivating Potential

A measure of the capacity of a job to provide intrinsic motivation through its characteristics, such as variety and significance.