Transactions Costs Refer to

question 106

Multiple Choice

Transactions costs refer to

• A)the implicit costs of production.
• B)the costs in time and other resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services.
• C)the raw material cost of production.
• D)the cost of transporting goods from one destination to another.

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Definitions:

Licence

A non-exclusive right to use property; revocable permission to use another’s land.

Sole Proprietor

An individual who owns and operates a business alone, bearing full responsibility for all debts and obligations of the business.

Wrongful Conduct

Actions or behaviors by an individual or entity that are illegal, unethical, or otherwise deemed inappropriate by societal or legal standards.

Course Of Employment

The period or activities during which an employee is executing tasks or duties as part of their job.