Which of the Following Statements About the Difference Between Transaction

question 66

Multiple Choice

Which of the following statements about the difference between transaction cost theory and resource dependence theory is true?

• A) Transaction cost theory proposes the use of a merger as an interorganizational strategy and resource dependence theory does not.
• B) Resource dependence theory proposes the use of strategic alliances, but transaction cost theory recommends not using alliances.
• C) Transaction cost theory considers how an organization can manage its environment but resource dependence theory does not.
• D) Transaction cost theory is a better predictor of why companies choose a certain form of interorganizational strategy.

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Definitions:

Contribution Margin Ratio

A financial ratio that measures the profitability of a product by subtracting variable costs from sales and dividing the result by total sales.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain range.

Break-even Sales

The amount of revenue needed to cover total costs, both fixed and variable, with no profit or loss.