Buyers Should Avoid the Practice of Routinely Tolerating Suppliers That

question 39

True/False

Buyers should avoid the practice of routinely tolerating suppliers that breach purchase contracts because doing so may result in the buyer forfeiting the right to legal action.

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Definitions:

Required Return

Required return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Annual Dividend

This is the total amount of dividend payments a shareholder receives from a company in one year.

Long-Run Growth Rate

The sustainable rate at which a company or an economy can grow its output over a long period without increasing inflation.

Required Rate of Return

The minimum return an investor expects to achieve for the risk associated with a particular investment.