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:

Little or No Association

A term used in statistics to describe a situation where there is minimal or no statistical relationship between two variables.

Nonlinear

Describing a process, relation, or equation in which there is not a straight line relationship between variables.

Positive

An attribute or condition that denotes the presence of a particular trait, value, or outcome, typically associated with desirable results.

Moderate

Describes something, such as an opinion, climate, or behavior, that is not extreme or excessive; mild or within reasonable limits.