A negative side of long-term contracts is:
A) high transaction costs.
B) a loss of flexibility.
C) the continual need to renegotiate the contract.
D) None of the statements is correct.

Question

Quizplus · Accepted Answer

Long-term contracts often require parties to commit to a specific set of terms or conditions, limiting their ability to adapt to changes in the market or other circumstances that may arise over time. This lack of flexibility can be a significant disadvantage, particularly in industries or markets that are constantly evolving.

A Negative Side of Long-Term Contracts Is