Long-term contracts such as licensing and franchising offer an advantage over short-term contracts because:
A) They cost less.
B) The competitive bidding process is extended.
C) There is more incentive for transaction-specific investments.
D) Licensing transfers ownership; short-term contracts do not.

Question

Quizplus · Accepted Answer

Long-term contracts help facilitate transaction-specific investments; short-term contracts do not.

Long-Term Contracts Such as Licensing and Franchising Offer an Advantage