A Drawback for a Firm Engaging in a Short-Term Contract

question 15

Multiple Choice

A drawback for a firm engaging in a short-term contract is:

• A) It usually takes at least a year for processes between organizations to get in sync.
• B) The supplying firm has no incentive to make additional transaction-specific investments to increase performance or quality.
• C) There is no competitive bidding process with short-term contracts.
• D) Short-term contracts offer less planning opportunity than individual market transactions.

---

Definitions:

Cohesiveness

The measure of the bond or strength of the relationships uniting the members of a group or team towards a common objective.

Pay Equity

The concept of ensuring equal pay for work of equal value, aimed at eliminating gender and other discriminatory pay gaps.

Common Identity

The shared traits, characteristics, or belonging that unites individuals within a group, fostering a sense of solidarity.

Group Attractiveness

The extent to which a group is considered desirable to join by potential and current members, often due to its prestige, goals, or relationships.