Which of the Following Is NOT a Difference Between In-House

question 26

Multiple Choice

Which of the following is NOT a difference between in-house and independent suppliers?

• A) In-house suppliers have much less incentive to look for new ways to reduce operating costs or increase component quality.
• B) Independent suppliers can pass on cost increases in the form of higher transfer prices.
• C) Independent suppliers constantly need to increase their efficiency to protect their competitive advantage.
• D) In-house suppliers do not face competition and the resulting rising cost structure that reduces a company's profitability.
• E) When company-owned suppliers develop a higher cost structure than those of independent suppliers, vertical integration can be a major disadvantage.

---

Definitions:

Packet

A packet in networking refers to a formatted unit of data carried by a packet-switched network.

Bytes

A unit of digital information storage, typically consisting of eight bits, used to represent a single character of data.

Transmitted

The process of sending or conveying something from one place or person to another.

Circuit Switching

Where a dedicated connection is formed between two points (such as two people on telephones) and the connection remains active for the duration of the transmission.