Which of the Following Is a True Argument Regarding the Make-Or-Buy

question 10

Multiple Choice

Which of the following is a true argument regarding the make-or-buy decision process?

• A)Firms should make an asset,rather than buy it,if that asset is a source of competitive advantage for the firm
• B)Firms should buy,rather than make,to avoid the costs of making the product
• C)Firms should make,rather than buy,to avoid paying a profit margin to independent firms
• D)Firms should buy,rather than make,in general,because market firms are subject to the discipline of the market and must be efficient and innovative to survive
• E)Firms should make,rather than buy,because a vertically integrated producer will be able to avoid paying high market prices for the input during periods of peak demand or scarce supply

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Definitions:

Negative Deviations

Differences where observed values fall below the expected or average values in a data set.

Negatively Skewed

A distribution that is skewed to the left, indicating that the tail on the left side is longer or fatter than the right side.

Parameters

In statistics, parameters are numerical characteristics of a population, such as mean or standard deviation, that are typically unknown and estimated from sample data.

Statistics

The study of the collection, analysis, interpretation, presentation, and organization of data.