A Drawback Of Short-Term Contracting As An Alternative To Making A Component In-House Is That

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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 supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. C. it fails to allow a long planning period that individual market transactions provide. D. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
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B. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality.
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