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One of benefits of using the markets

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Reference no: EM133224140

Question  1. One of the benefits of using the markets is:

a. The legal fees involved in setting-up complex contractual agreements.

b. Incomplete contracts may lead to hold-up problems

c. The economies of scale of market firms.

d. Partner firms may appropriate know-how from each other.

Question  2. The hold-up problem is more likely to occur when:

a. Own company has high cost in this part of the value chain.

b. Agency efficiency is positive.

c. Asset specificity is high and the company has little expertise in this part of the value chain.

d. Technical efficiency is positive and greater than agency efficiency

Question 3. If two research methodologies are uncorrelated, this means that:

a. The two methodologies are interdependent.

b. When one methodology fails then the other fails as well.

c. The outcome of one methodology does not depend on the outcome of the other.

d. When one methodology is profitable, the other is loss making.

Reference no: EM133224140

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