Under What Circumstance Would It Be Logical to Leave Contracts

question 24

Multiple Choice

Under what circumstance would it be logical to leave contracts vague and open-ended?

• A)When performance may be ambiguous or difficult to measure.
• B)When one of the firms in the contract is much larger than the other firm
• C)If there are many other firms that can provide the same service or product
• D)When the cost of writing the contract is too high
• E)If the smaller of the two contracting firms is the upstream firm

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Definitions:

Wider Context

Refers to the broader scope or larger environment in which something exists or takes place, encompassing more than just the immediate situation.

Disruption

An innovation or event that significantly alters the way that industries, businesses, or markets operate.

Brand Position

Represents the unique space a brand occupies in the minds of consumers, distinguishing it from its competitors based on attributes, benefits, and perceptions.

Radical Innovation

Involves breakthrough developments or products that significantly alter the dynamics of industry, often creating new markets or reshaping existing ones.