When an Organization Relies on a Small Number of Trading

question 29

Multiple Choice

When an organization relies on a small number of trading partners:

• A) bounded rationality decreases.
• B) bounded rationality increases.
• C) the risk of opportunism increases.
• D) the risk in investing in specific assets decreases.

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Definitions:

Appeal to Ignorance

A logical fallacy where it's claimed that something is true simply because it has not been proven false, or vice versa.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Stupid Person

A derogatory term used to describe someone perceived as lacking intelligence or common sense; however, it's subjective and potentially offensive.

Hasty Generalization

A generalization is made from a sample that is too small or biased.