SparklingLeaves Is One of the Major Suppliers of Automobile Tools

question 42

Multiple Choice

SparklingLeaves is one of the major suppliers of automobile tools to StanMotors, a leading automobile company. Many of the tools are customized to meet the specific needs of StanMotors and hence have little other value. In return, StanMotors has agreed to make SparklingLeaves its sole supplier of automobile equipment for a period of 15 years. This scenario illustrates:

• A) horizontal integration.
• B) a credible commitment.
• C) competitive bidding.
• D) vertical integration.
• E) parallel sourcing.

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Definitions:

Hot Flashes

Sudden feelings of warmth, usually most intense over the face, neck, and chest, that can occur during menopause due to hormonal changes.

Estrogen

A group of steroid hormones that promote the development and maintenance of female characteristics of the body.

Progesterone

A steroid hormone that plays a key role in the menstrual cycle, pregnancy, and embryogenesis of humans and other species.

Menopause

A natural biological process marking the end of a woman's reproductive years, characterized by the cessation of menstrual cycles.