The transaction costs of completing a business agreement or deal of some sort, over and above the price of the deal, can include all of the following except
A)the costs of searching for an attractive target.
B)the costs of evaluating its worth.
C)bargaining costs.
D)the costs of completing the transaction.
E)the premium cost.

Question

Quizplus · Accepted Answer

The premium cost is not typically considered a transaction cost as it is a part of the price of the deal rather than an additional cost incurred in completing the transaction. The other options, A-D, are all commonly considered to be transaction costs.

The Transaction Costs of Completing a Business Agreement or Deal