A Firm Once Made Purchasing Decisions Based on Which Supplier

question 88

True/False

A firm once made purchasing decisions based on which supplier had the lowest cost. But once cash flow was healthy, purchasing decisions were made based on the fastest delivery of goods and services by firms. In this case, delivery speed is clearly the order qualifier.

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Definitions:

Negative Externalities

Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.

Positive Externalities

Benefits experienced by a third party not directly involved in the production or consumption of a good or service.

Socially Desirable

Something that is socially desirable is valued and sought after in a society because it promotes the general welfare or aligns with societal norms and values.

Allocate Resources

The process of distributing available resources among various projects or units in order to achieve strategic goals effectively.