Banana Computers Has Decided to Procure Processing Chips Required for Its

question 55

Multiple Choice

Banana Computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. How will this decision affect the firm?

• A) The firm will be protected against the principal-agent problem.
• B) The firm's administrative costs will be low because of necessary bureaucracy.
• C) The firm will have more flexibility in purchasing and comparing prices of goods and services.
• D) The firm will have high-powered incentives, such as hourly wages and salaries.

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Definitions:

Biases And Filters

Cognitive biases and personal filters through which individuals process and interpret information, affecting perception and decision-making.

Understand Message

The process of comprehending or grasping the meaning or significance of communication.

Trait Of Effective Listening

The characteristic of actively and attentively absorbing information presented by others, showing engagement and understanding.

Paraphrasing

The restating of text or speech using different words, often to clarify meaning or show understanding.