Which of the Following Qualitative Factors Should Be Considered in a Make-Or-Buy

question 5

Multiple Choice

Which of the following qualitative factors should be considered in a make-or-buy decision?

• A) The effect on the regular supply source
• B) The company's ability to make a high-quality component
• C) Employment considerations
• D) All of these are correct

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Definitions:

Investment

The allocation of resources, such as capital or time, in the expectation of generating income or profit.

MPC

Marginal Propensity to Consume, a metric that represents the proportion of an additional unit of income that is spent on consumption.

Stock Market

A collection of markets and exchanges where the buying, selling, and issuance of shares of publicly held companies take place.

Initial Public Offerings

The process where a private company offers shares of stock to the public for the first time.