As a Firm Moves from Local Option Systems to Regional

question 7

Multiple Choice

As a firm moves from local option systems to regional and global systems

• A) agency costs increase.
• B) coordination costs decrease.
• C) transaction costs increase.
• D) both transaction and agency costs increase.

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Definitions:

Risk Taking

The act of engaging in behaviors or decisions that have the potential for negative consequences but are pursued for potential positive outcomes.

Need To Belong

An innate human desire to form and maintain strong, stable relationships with others.

Interpersonal Contact

Direct interaction between two or more individuals, involving communication or physical presence.

Relationships

Connections between individuals or groups characterized by emotional or social linkage, and interactions that can influence behavior and well-being.