Some Firms Are Moving Towards Increasing Their Number of Suppliers

question 14

True/False

Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs.

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Definitions:

Equity Method

An accounting technique used by companies to record their investments in other companies, where the investment gives the investor significant influence over the investee, but not control or full ownership.

Additional Paid-in Capital

The excess amount over the par value that shareholders pay when shares are issued, recorded in the equity section of the balance sheet.