Which of the following processes is most representative of a less integrated firm on the "buy" end of the make-or-buy continuum?
A)Arm's length market transactions
B)Long-term contracts
C)Strategic alliances and joint ventures
D)Parent/subsidiary relationships
E)Perform activity internally

Question

Quizplus · Accepted Answer

Arm's length market transactions are indicative of a transactional and less integrated relationship between firms. In these types of transactions, the firms involved have minimal ongoing interaction and the relationship is primarily focused on the immediate transaction at hand. It is a common approach used by firms that prefer to buy rather than make goods or services, as it allows them to access the resources they need without having to invest in building out internal capabilities.

Which of the Following Processes Is Most Representative of a Less