Question

A disadvantage of a short-term contract as an alternative on the make-or-buy continuum is that ______. Multiple choice question. the supplying firm has a shorter planning period than it has for individual transactions the supplying firm has little reason to perform transaction-specific investments the buying firm can get a lower price for the work because of the competitive bidding process the supplying firm has a longer planning period in comparison to individual market trans

Answer 1

A disadvantage of a short-term contract as an alternative on the make-or-buy continuum is that: B. the supplying firm has little reason to perform transaction-specific investments.

A short-term contract can be defined as a fixed term contractual agreement between two or more parties that has a definite duration of not more than one year or 24 months.

Hence, a short-term contract is characterized by a specific and limited amount of time.

A make-or-buy continuum can be defined as an act of making a strategic choice between manufacturing (making) a product internally (in-house) or buying the product from an external supplier.

Basically, one of the disadvantages of using a short-term contract as an alternative to the make-or-buy continuum is that, the supplying firm has little or no reason to perform transaction-specific investments i.e a non-transferable investment that has a unique utility.

Read more; brainly.com/question/23439561?referrer=searchResults