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Business Partners Elaina and Francine Are Discussing a Recent Lecture

Question 26

Multiple Choice

Business partners Elaina and Francine are discussing a recent lecture on the economic value of trust. Both are committed to ethical behavior and seek to work only with like-minded partners. Elaina believes that using traditional contracts and employing a strong legal department are all their company needs to create value. Francine disagrees. Which of the following choices is Francine's best response to persuade Elaina to nurture strong-form-trust relationships with their trading partners?


A) Strong-form trust creates positive emotions and employee engagement and it betters societal relationships and job satisfaction. It helps employees lead a PERMA life.
B) Legal departments and contracts are very costly, which means the company cannot rely on them for the long run. Strong-form trust is a free and easy undertaking with strong results.
C) Strong-form trust eliminates friction in an economic system, thereby eliminating transaction costs.
D) Companies nurturing strong-form-trust relationships are better poised to become economic ecosystems that create internal value for employees.

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