The theory of Transaction Cost Economics suggests that the multibusiness firm benefits in two major ways over standalone businesses. These can be categorized as scope advantages and
A) Knowledge advantages
B) Scale advantages
C) Cost advantages
D) Governance advantages

Question

Quizplus · Accepted Answer

Transaction Cost Economics suggests that multibusiness firms benefit from governance advantages, which involve more efficient management and coordination of transactions within the firm compared to market transactions.

The Theory of Transaction Cost Economics Suggests That the Multibusiness