A Significant Determining Factor on Whether a Firm Conducts an Activity

question 52

Multiple Choice

A significant determining factor on whether a firm conducts an activity internally is

• A)whether the transaction costs of buying in the activity in the market exceed the administrative cost of doing it themselves.
• B)whether transaction costs in the market of buying in the activity exceed the administrative cost buying it in.
• C)how reliable their workforce is, compared with an external supplier's reliability.
• D)none of the above.

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Definitions:

Absorb Signals

The process by which a material takes in or soaks up electromagnetic signals, preventing them from passing through.

Packet Screening

Having a screening router examine data packets to ensure they originated from or are authorized by valid users on a network.

Protection

Measures or mechanisms put in place to guard against damage, loss, or unauthorized access.

Computer Network

A system of interconnected computers and devices that can exchange data and share resources amongst each other.