To Guard Against the Contingency of a Business's Sole Vendor

question 18

Multiple Choice

To guard against the contingency of a business's sole vendor suffering a catastrophe, it is wise for a startup to use one supplier for about _____ to _____ percent of its needs and one or more additional suppliers for the rest and also as backups in case the principal supplier fails.

• A) 40;  50
• B) 50; 60
• C) 60; 70
• D) 70; 80
• E) 25; 35

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Definitions:

Deadweight Loss

Deadweight loss is the decrease in total surplus (both consumer and producer surplus) that occurs when a market is not in perfect competition, typically due to inefficiencies like taxes, subsidies, or monopolies.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Poverty Line

A threshold set by governments to define the minimum income level necessary to afford basic necessities, delineating who is considered to be in poverty.

Political Conservatives

Individuals or groups who advocate for maintaining traditional institutions, values, and practices, often emphasizing limited government, personal responsibility, and free-market economy.