Relational contracts

Question

Quizplus · Accepted Answer

Relational contracts establish procedures or structures for planning to ensure ongoing effective exchange, allowing for continuity in the relationship. They focus on trust, commitment, and cooperation rather than just the transaction itself.

Answer: A, E 
 Neither A nor E accurately describe relational contracts. A suggests that suppliers become employees, which is not the case in a relational contract. E describes the formation of a development team, which may be a part of a relational contract, but it is not the defining characteristic.

Answer: C, D 
 Neither C nor D accurately describe relational contracts. C refers to the process of supplier evaluation, which may occur in a relational contract, but it is not the defining characteristic. D refers to a simple purchase contract, which is not the same as a relational contract.

Relational Contracts