The New, More Strategically Oriented Purchasing Departments Have a Mission

question 96

Multiple Choice

The new, more strategically oriented purchasing departments have a mission. Which of the following most accurately describes that mission?

• A) Make the most profit possible and remain independent of entanglements.
• B) Approach every purchasing opportunity as means to create interdependency.
• C) Seek the best value from fewer and better suppliers.
• D) Outsource the supply function.
• E) Abandon all strategies except for systems selling and buying.

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Definitions:

Defaulting

Failing to meet the legal obligations of a loan, typically by not making the required payments.

Health Insurance Market

The sector of the economy providing plans and services for individuals to cover healthcare expenses.

Adverse Selection

A situation in markets where buyers and sellers have asymmetric information, leading potentially to a selection of undesirable outcomes, such as in insurance markets where those most likely to need coverage are also most likely to purchase it.

Life Insurance Companies

Financial institutions that provide compensations to beneficiaries upon the insured individual's death, offering financial security and risk management.