A positive side of long-term contracts is:
A) low transaction costs.
B) a loss of flexibility.
C) the continual need to renegotiate the contract.
D) None of the answers are correct.

Question

Quizplus · Accepted Answer

Long-term contracts can provide low transaction costs because once the contract is established, there is no need for continuous negotiation and the parties involved can focus on fulfilling their obligations. This can be beneficial for both parties as it reduces the need for constant communication, documentation, and legal fees.

A Positive Side of Long-Term Contracts Is