After Years of Negotiating Short-Term Contracts with Its Suppliers, Icon

question 117

Multiple Choice

After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts.In doing this, Icon Images is hoping to:

• A) reduce transaction costs.
• B) increase negotiating leverage with suppliers.
• C) become less dependent on its suppliers.
• D) move toward horizontal alliances with its suppliers.

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Definitions:

Diathesis-Stress Model

A psychological theory that explains behavior as a result of a predispositional vulnerability together with stress from life experiences.

Predictive

Relating to the ability to foretell or forecast future events or outcomes based on current or past data.

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.

Vascular Headaches

A category of headaches believed to be related to the dilation or constriction of blood vessels in the head, such as migraines.