What Term Describes When a Firm Has Minimized the Extent

question 2

Multiple Choice

What term describes when a firm has minimized the extent to which the exchange of goods and services in the vertical chain has been organized to minimize coordination,agency and transaction costs?

• A)Agency efficiency
• B)Technical efficiency
• C)Lean compliant
• D)Economizing
• E)Six sigma compliant

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Definitions:

Opportunity Cost

The value of the best alternative foregone as a result of choosing a different option.

Idle Capacity

Unused or underutilized resources and capabilities within an operation that could be employed to generate output.

Tactical Decisions

Short-term choices made by an organization to address immediate challenges or opportunities, often within the framework of broader strategic plans.

Strategic Decisions

High-level choices that are made by top management to steer an organization towards its long-term goals and objectives.