Page 291 - E2 Integrated Workbook STUDENT 2018
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Answers to supplementary objective test questions
CHAPTER 12 – THE FINANCE FUNCTION
12.1 The following are types of asset specificity: A, C, D and E
There are six main types of asset specificity. Physical, temporal, human asset
and dedicated asset are listed in the question. The other two are site and brand
name capital.
Asset specificity is the most important element in determining transaction cost.
The more specific the assets required are, the higher the transaction cost will
be.
12.2 Professional advisors can be used in many situations, and can be used in
all of the situations suggested.
CHAPTER 13 – MANAGING ORGANISATIONAL CHANGE
13.1 The completed diagram is shown below.
Extent of change
Transformation Realignment
Incremental EVOLUTION ADAPTATION
Speed of change
Big Bang REVOLUTION RECONSTRUCTION
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