Miriam Is a Senior Manager for an International Chain of Fitness

question 12

Multiple Choice

Miriam is a senior manager for an international chain of fitness centers. Two suppliers provide exercise machines for her company. Which of the following is the wisest advice on how Miriam should manage her suppliers?

• A)Keep the relationships as they are and focus on other matters, since suppliers are not essential to this type of organization.
• B)Seek out potential new suppliers who can meet or exceed the quality standards of existing suppliers.
• C)Eliminate one of the suppliers based on the quality of machinery and speed of shipping.
• D)Eliminate one of the suppliers based on the lowest total price for each machine.

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Definitions:

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually stated as an annual rate.

Annual Return

The percentage of gain or loss on an investment over a one-year period, taking into account both capital gains and dividends.

Retirement Fund

Financial resources that have been saved and are used to support a person's retirement.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments.