Which of the Following Best Defines Resource Dependence Theory

question 8

Multiple Choice

Which of the following best defines resource dependence theory?

• A) A small supplier should count on price competition for locking in accounts.
• B) A small supplier should lock in a single large company for the bulk of its sales.
• C) Organizations will do whatever is needed to avoid dependence on the environment and increase their autonomy.
• D) Organizations will set up dependencies when they become more self-reliant.

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Definitions:

NFP Organization

A not-for-profit organization (NFP) is a type of organization that does not earn profits for its owners. All the money earned by or donated to an NFP is used in pursuing the organization's objectives and keeping it operational.

Endowment Fund

A fund where the principal amount is kept intact while the investment income is used for specific purposes, often found in non-profits and educational institutions.

Principal Amount

The initial size of a loan or bond or the amount deposited, excluding any interest or earnings.

Scholarships

Financial aid awarded to students to help pay for education expenses, often based on academic achievement or other criteria.