A Long-Term Contract Does Not Provide an Incentive for a Supplier

question 43

True/False

A long-term contract does not provide an incentive for a supplier to invest in new plants and equipment.

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Definitions:

Middle East

A region that broadly includes countries in Western Asia and parts of North Africa, known for its strategic geopolitical significance.

Disposable Income

Funds that households can use for saving and expenditures after income taxes are taken out.

APS

Acronym for Average Propensity to Save, which is the ratio of total savings to total income in an economy, indicating how much people save on average per unit of income.

Investment

Assigning financial resources in the hope of creating revenue or gains.