Which of the following interorganizational strategies help an organization minimize transaction costs and avoid bureaucratic costs?
A) Forming a joint venture
B) Obtaining minority ownership in other companies
C) Outsourcing
D) Merging with another company

Question

Quizplus · Accepted Answer

Outsourcing allows an organization to minimize transaction costs by allowing other specialized firms to perform functions that the organization does not specialize in, reducing bureaucratic costs. This can result in greater efficiency and cost savings for the organization. The other options may involve significant bureaucratic costs and may not necessarily minimize transaction costs.

Which of the Following Interorganizational Strategies Help an Organization Minimize