Most Businesses Try to Control the Level of Quality in the Parts

question 22

Multiple Choice

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for in order to achieve their quality goals.

• A) how many different suppliers they use
• B) the number of inelastic demands made
• C) controlling when shipments will arrive
• D) the percentage of defects allowed
• E) how long the parts should last

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Definitions:

Consumer Preferences

The subjective tastes and desires influencing the buying behavior of consumers among different goods and services.

Tariffs

Taxes imposed on imported goods and services to increase their price and protect domestic industries.

Interest Rates

The price paid for borrowing money, usually expressed as a percentage rate over a period of one year.

Balance Of Trade

The difference between imports from and exports to another country. If imports are larger a trade deficit exists. If exports are larger there is a trade surplus.