Sam's Company Can Either Make the Components or Buy Them

question 128

Multiple Choice

Sam's company can either make the components or buy them. He should decide to buy components from a supplier (as opposed to making them) :

• A) when his plant has excess plant capacity.
• B) when buying the components will require greater flexibility on the firm's part to accommodate the supplier.
• C) if product quality would be the same (regardless of the firm's decision).
• D) if the risk of equipment obsolescence can be transferred to the supplier.

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Definitions:

England

A country that is part of the United Kingdom, located on the island of Great Britain, known for its rich history, cultural heritage, and as the birthplace of the English language.

Barbara Ehrenreich

An American author and activist known for her critiques on the economic inequalities in Western societies, notably in her book "Nickel and Dimed."

Nickel and Dimed

A term popularized by Barbara Ehrenreich's book on the struggles of low-wage workers, highlighting the challenges of living on insufficient income.

Minimum-Wage

The lowest legal hourly payment for workers, set by law or contract, aimed at ensuring a minimum standard of living for employees.