Ametropolitan school system consists of three districts – north, south, and central. the north district contains 25% of all students, the south district contains 40%, and the central district contains 35%. a minimum-competency test was given to all students; 10% of the north district students failed, 15% of the south district students failed, and 5% of the central district students failed.

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.