Which Sourcing Strategy Is Particularly Common When the Products Being

question 123

Multiple Choice

Which sourcing strategy is particularly common when the products being sourced are commodities?

• A) few suppliers
• B) many suppliers
• C) keiretsu
• D) vertical integration
• E) virtual companies

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Definitions:

Capital Budgeting

It refers to the process by which companies evaluate and select major investment projects, considering their potential long-term profitability.

After-Tax Discount Rate

The rate of return on an investment after accounting for taxes.

Incremental Sales

The additional revenue generated from a specific business action or decision, beyond the existing sales level.

Discount Factor

A financial metric used to determine the present value of a future cash flow, discounting it for risk and the time value of money.