When Is It Better for a Construction fiRm to Hire

question 21

Multiple Choice

When is it better for a construction firm to hire architects rather than contract them through the market?

• A) When the in-house contracts with the architects is complete.
• B) When it is difficult to monitor the performance of the hired architects.
• C) When the transaction costs of contracting them through the market are low.
• D) When the enforcement of the market contracts is difficult.

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Definitions:

Bank Charges

Fees assessed by a bank for its services or as penalties for not meeting specific account requirements.

Bank Statement Adjustment

Bank Statement Adjustment involves correcting discrepancies between a company’s accounting records and its bank account statement, to reflect the accurate amount of cash available.

Company Books Adjustment

Modifications or corrections made to the accounting records of a company to ensure their accuracy and completeness.

Deposit In Transit

Funds that have been received and recorded by a company but not yet credited by its bank, often seen in bank reconciliation processes.