Business, 19.06.2020 21:57 jonmorton159
A drawback of short-term contracting as an alternative to making a component in-house is that:.
a. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent.
b. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
c. it fails to allow a long planning period that individual market transactions provide.
d. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality.
Answers: 2
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A drawback of short-term contracting as an alternative to making a component in-house is that:.
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