2)

Using transaction cost logic, the reason Aldi makes 90% of its products is because...

	a.	they can effectively use their physical assets to reduce shopping time.
	b.	they can effectively control costs and quality, and internalizing the transaction results in a line of proprietary products.
	c.	they can exploit the price sensitivity of their customers and maintain prices just below their competitors.
	d.	they can use their power over branded food manufacturers to engage in transactional relationships.

3)

A main use of working capital for grocers is to purchase the food items to stock the shelves. Managers that effectively achieve low or even negative levels of working capital are able to manage two financial forces, which are...

	a.	interest expense is kept relatively low, and interest earned by quick turns is relatively high.
	b.	interest expense is kept relatively low, and interest earned by slow turns is relatively high.
	c.	interest expense is kept relatively high, and interest earned by slow turns is relatively low.
	d.	interest expense is kept relatively high, and interest earned by quick turns is relatively low.

4)

Which is the correct type of market for area 4 in the below figure

	a.	relational transaction market where relationships dominate and both buyers and suppliers seek and benefit from a relationship like a strategic alliance or a partnership
	b.	buyer's market where the buyer holds the power and doesnt pursue relationships with its suppliers
	c.	transactional transaction market, where no relationships exist between buyers and suppliers, like occurs in commodity markets
	d.	seller's market, where the seller has the power and doesnt want a market relationship with its buyers

5)

Imagine Woolworths and Coles dominate the grocery retail market as described in the Elusive Written Contract article. Now, Woolworth's market share rises from 35% to 52% and Coles' market share falls from 35% to 28%. There are 10 other groceries competing with them. Each of the ten has their market share fall from 3% to 2%. The C4 falls _X___ % while the HHI falls _Y___%

	a.	X = 0%, Y =8%
	b.	X = 31%, Y =50%
	c.	X = 11%, Y =39%
	d.	X = 6%, Y =18%
	e.	X = 10%, Y =13%
	f.	X = 0%, Y =31%

6)

A firm should go to the marketplace and buy the needed product from a market firm, rather than make the product themselves, except when...

	a.	the market firm is subject to market discipline, whereas in-house units may be able to hide their inefficiencies behind overall corporate success.
	b.	the market firm has patents/proprietary information that makes low cost production possible.
	c.	the market firm can achieve economies of scale that in-house units cannot.
	d.	the costs to coordinate or contract with a market firm are high and there exists a lot of asset specificity risk.