In Some Cases, a Firm May Be Looking to Develop

question 39

True/False

In some cases, a firm may be looking to develop a long-term relationship with a potential supplier, particularly if the supplier is in the "Routine" quadrant of the Strategy Portfolio Matrix and the category of spend is low volume and routine to the company's business.

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to be reinvested in its core business or to pay debt.

Deficit

The amount by which expenses exceed income or liabilities surpass assets.

Retained Earnings Statement

A financial statement that shows the amounts of a company's profits that are kept within the business rather than paid out as dividends.

Corporation Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific time period.