Which of the Following Methods Is Most Likely to Be

question 67

Multiple Choice

Which of the following methods is most likely to be used by buyers to review the performance of chosen suppliers?

• A) the buyer may contact different suppliers and ask for their evaluations
• B) the buyers may rate the end-users on several criteria using a weighted-score method
• C) the buyer might aggregate the cost of poor performance to come up with adjusted costs of purchase, including price
• D) the buyers may aggregate the opinions of various competitors and come up with the adjusted cost of supply
• E) the buyers might adopt the Supplier Added Value Effort technique to calculate supplier efficiency

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Definitions:

Equity Firms

Equity firms, often referred to as private equity firms, are investment companies that acquire, manage, and sell stakes in companies, using their funds or raised capital.

Net Present Value

A method to evaluate investments by calculating the difference between the present value of cash inflows and outflows over a period.

Synergy Value

The additional value created from combining two or more entities, where the whole is greater than the sum of its parts.

Equity-Financed

Pertaining to a business or project that is funded through the sale of equity or shares rather than debt.