After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts.In doing this, Icon Images is hoping to:
A) reduce transaction costs.
B) increase negotiating leverage with suppliers.
C) become less dependent on its suppliers.
D) move toward horizontal alliances with its suppliers.

Question

Quizplus · Accepted Answer

Longer-term contracts can reduce transaction costs by minimizing the frequency of negotiations and the associated administrative expenses.

After Years of Negotiating Short-Term Contracts with Its Suppliers, Icon