In the Context of the Specific Environment of an Organization

question 61

Multiple Choice

In the context of the specific environment of an organization, which of the following is a difference between opportunistic behavior and relationship behavior?

• A) Opportunistic behavior is observed when both buyers and sellers show least reliability on the other, whereas relationship behavior is observed when both buyers and sellers believe in creating short-term client relationships.
• B) A low degree of buyer or seller dependence can lead to opportunistic behavior, whereas a high degree of buyer or seller dependence can lead to relationship behavior.
• C) In opportunistic behavior, either the buyer or the seller benefits at the expense of the other, whereas in relationship behavior, both the buyer and the seller mutually benefit.
• D) Opportunistic behavior leads to compromises that both the supplier and the buyer agree upon, whereas relationship behavior leads to development of new business relationships when existing ones fail to work.

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Definitions:

Operating Capability

The ability of a company to maintain the necessary level of operation to meet its business objectives, often measured by comparing current performance to historical standards.

Company Performance

An assessment of how well a company is achieving its financial and operational goals, often measured using metrics like revenue growth, profitability, and market share.

Level of Operations

The scale, scope, and magnitude of the activities conducted by an organization, often assessed to analyze operational efficiency and capacity utilization.

Capital Maintenance

An accounting concept focused on ensuring that a company's capital is preserved, aiming to maintain the purchasing power of shareholders' capital over time.