Which of the Following Strategies Would Increase Overall Supply Chain

question 334

Multiple Choice

Which of the following strategies would increase overall supply chain risk?

• A) Single sourcing a product that makes the highest annual profit
• B) Outsourcing a product that is not well suited to your operations
• C) Identify multiple sources for a product that has a potential for supply chain disruption
• D) Internally manufacturing a product that has a high level of technical intellectual property

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Definitions:

Pure Expectations Hypothesis

A theory that suggests that the interest rates on long-term bonds will equal an average of current and future short-term interest rates.

Yield Curve

A graphical representation showing the relationship between the interest rates on debts of different maturities, typically of government bonds, highlighting investors' expectations for future interest rates and economic conditions.

Liquidity Premium

An additional return that investors demand for holding securities that are not easily convertible into cash without a significant loss in value.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified time period, often measured as a percentage.