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:

Thirst

The basic sensation prompting the desire to drink liquids, resulting from dehydration or electrolyte imbalances in the body.

Digest

The process of breaking down food through mechanical and chemical means into substances that can be absorbed and assimilated by the body.

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes the experience of emotion, implying that emotions are a result of the interpretation of bodily reactions.

Appraisal Theory

A theory in psychology that describes how individuals evaluate events as beneficial or harmful to their well-being, which then determines their emotional response.