One of the Most Fundamental and Critical Decisions in Any

question 18

Multiple Choice

One of the most fundamental and critical decisions in any organization is, should we:

• A) have a single source or multiple sources for a specific purchase?
• B) order small quantities to avoid carrying costs or large quantities to get volume discounts?
• C) switch suppliers because of a slight price discount from a potential supplier?
• D) make or buy the needed good or service?
• E) enter into a long- or short-term agreement with a supplier?

---

Definitions:

Critical Roles

Positions within an organization deemed essential for operational success and achieving strategic objectives.

Peter Drucker

A renowned Austrian-born American management consultant, educator, and author, widely recognized as the father of modern management.

Acceleration Pool

A fund set aside in venture financing and mergers to accelerate the vesting of employee stock options upon a change in control.

Core Competencies

The unique strengths and capabilities that allow an organization to achieve competitive advantage in its industry.