Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN: 9780134492513
Author: Kotler, Philip, Armstrong, Gary (gary M.)
Publisher: Pearson Higher Education,
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With reference to the concept of "Arm's Length Transaction", which of the following statements is
correct?
(a) The concept of "Arm's Length Transaction" concerns companies that make the
choice to integrate vertically in order to minimize transaction costs towards the market
(b) The concept of "Arm's Length Transaction" refers to transactions between companies
belonging to the same supply chain, which organize transactions in such a way as to minimize
the logistic costs of the supply chain
(c) The concept of "Arm's Length Transaction" concerns transactions between independent
companies that each act in their own interest according to market logic
(d) The concept of "Arm's Length Tansaction" identifies transactions between
independent companies that are however connected in a hierarchical logic of "quasi
vertical integration"
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Transcribed Image Text:With reference to the concept of "Arm's Length Transaction", which of the following statements is correct? (a) The concept of "Arm's Length Transaction" concerns companies that make the choice to integrate vertically in order to minimize transaction costs towards the market (b) The concept of "Arm's Length Transaction" refers to transactions between companies belonging to the same supply chain, which organize transactions in such a way as to minimize the logistic costs of the supply chain (c) The concept of "Arm's Length Transaction" concerns transactions between independent companies that each act in their own interest according to market logic (d) The concept of "Arm's Length Tansaction" identifies transactions between independent companies that are however connected in a hierarchical logic of "quasi vertical integration"
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