An Organization That Decides to Buy All Parts of an Item

question 104

Multiple Choice

An organization that decides to buy all parts of an item from the same company is using:

• A) single-supplier purchasing.
• B) multiple sourcing.
• C) same vendor analyzing.
• D) straight rebuying.
• E) sole sourcing.

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Definitions:

Substitution Effect

Change in consumption of a good associated with a change in its price, with the level of utility held constant.

Perfectly Competitive

A market structure characterized by a large number of small sellers and buyers, homogeneous products, and freedom of entry and exit.

Profit Maximizing

A process or strategy used by businesses to determine the best output and pricing levels in order to achieve the highest profit.

Labor

Human effort, both physical and mental, employed in the production of goods and services.